Positive data from the United States prompted investors to return to the greenback.
KUALA LUMPUR: The ringgit rebounded from yesterday’s loss to close higher against the US dollar on Friday, driven by renewed demand despite the greenback’s positive momentum.
At 6 pm, the ringgit rose to 4.4945/5000 versus the American dollar from Thursday’s close of 4.5005/5055.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) remained high at 109.259 points.
"The latest announcement by the Chinese central bank, the People’s Bank Of China (PBOC), was to halt its purchases of government bonds. The move suggests that the authority is attempting to narrow the interest rate gap with US rates to strengthen the Chinese yuan. As for dollar-ringgit, it remained stable at around RM4.50 throughout the day,” he told Bernama.
Next week, Afzanizam said the focus would be on US inflation where the producer price index (PPI) will be released on Tuesday and the consumer price index (CPI) on Wednesday.
The ringgit closed mostly firmer against other major currencies.
It edged up versus the Japanese yen to 2.8461/8497 from Thursday’s close of 2.8466/8500, rose vis-a-vis the euro to 4.6298/6355 from 4.6382/6434 but slipped against the British pound to 5.5296/5364 from 5.5271/5332 previously.
The local note traded mixed against ASEAN currencies.
It climbed versus the Thai baht to 12.9824/13.0043 from 12.9937/13.0142 at the previous close but weakened vis-a-vis the Indonesian rupiah to 277.5/278.0 from 277.4/277.9.
The ringgit also appreciated against the Singapore dollar to 3.2843/2888 from 3.2865/2906 yesterday but went down versus the Philippine peso to 7.70/7.71 from 7.69/7.71. - Bernama
