KUALA LUMPUR: The ringgit rebounded to close firmer against the US dollar as risk appetite improved following the positive Chinese yuan performance, said an analyst.
At 6 pm, the ringgit rose to 4.7205/7270 against the greenback from Friday’s close of 4.7340/7390.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that the ringgit was generally on firmer footing today, gaining more than 0.25 per cent against the US dollar.
He said this is very much in tandem with the Chinese yuan performance, gaining by 0.26 per cent to 7.2106 yuan per US dollar.
Remarks from China’s premiere Li Qian last Sunday indicated that the country’s low inflation rate amidst low debt burden by the central government would mean it has policy space to prescribe more stabilisation policies.
"This may have contributed to positive sentiments towards the yuan. This, in turn, also helped improve the value of the ringgit given the positive correlation between the yuan and local currency,” he told Bernama.
At the close, the ringgit was traded higher against a basket of major currencies.
It appreciated against the euro to 5.1066/1137 from Friday’s close of 5.1203/1257 and also against the British pound to 5.9549/9631 from 5.9582/9645.
The ringgit was also higher vis-a-vis the Japanese yen to 3.1185/1230 from 3.1223/1258 on Friday.
Meanwhile, the ringgit traded firmer against other Asean currencies.
It was firmer versus the Thai baht at 12.9627/9866 compared with 13.0116/0318 on Friday and improved vis-a-vis the Indonesian rupiah to 298.7/299.3 from 299.8/300.4.
The local unit also rose against the Singapore dollar to 3.5060/5111 from 3.5106/5145, and against the Philippine peso, it was traded higher at 8.37/8.39 compared with 8.41/8.42 previously. - Bernama
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