Ringgit extends uptrend against US dollar

KUALA LUMPUR: The ringgit finished Friday’s trading session stronger against the US dollar, reflecting Bank Negara Malaysia’s (BNM) pro-growth stance amid investors around the world beginning to seek better returns in riskier assets, giving support for the local currency.

At 6 pm, the ringgit climbed to 4.2830/2875 against the greenback from yesterday’s close of 4.3050/3100.

SPI Asset Management managing partner Stephen Innes said the prospects for the ringgit remained appealing for investors due to the significant upside for regional trade boosting local economies and the ASEAN stock markets, which saw stocks in Asia moving up despite losses in the US market as East versus West divergence persists.

"Emerging Market (EM) Asia holding an alluring appeal via exports to China, where mainland consumers enter the post-pandemic pent-up buying zone.

"Foreign inflows have already picked up to China and Europe and while those flows should increase, supporting both the yuan and euro, investors will then shift along the risk curve and look for more significant returns in riskier assets, which is EM Asia,” he told Bernama.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

The local note appreciated further against the Singapore dollar at 3.2386/2425 from 3.2483/2523, strengthened versus the euro to 4.6393/6442 from 4.6602/6656 and improved to 5.2861/2916 against the British pound from 5.3111/3172 at Thursday’s close.

The local unit also traded higher vis-a-vis the Japanese yen to 3.3073/3111 from 3.3544/3588 at yesterday’s close. - Bernama