KUALA LUMPUR: The ringgit extended its gains to close stronger against the US dollar on Monday, supported by easing US-China trade tension and weaker US economic data that initially pressured the dollar.
By 6 pm, the ringgit appreciated to 4.4080/4110 from 4.4165/4200 at Friday’s close.
SPI Asset Management managing partner Stephen Innes said the rally seemed set to continue, reversing the trend after US President Donald Trump issued a new order for a key US government committee to tighten restrictions on Chinese investment in important sectors like technology and energy.
"That was enough to boost the dollar, reducing some of the ringgit’s earlier gains. Although the ringgit still ended the session stronger, there are worrying signs emerging on the trade front,” he told Bernama.
Meanwhile, Bank Muamalat Malaysia Bhd’s chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit appreciated against the US dollar today to as high as RM4.3925 in the early afternoon before settling around RM4.4060 late in the evening.
He said that for now, the ringgit has gained good traction against the US dollar.
"However, it is still early days as the Trump administration policies’ situation is still fluid,” he added.
Meanwhile, the ringgit was traded mostly higher against major currencies.
It weakened against the Japanese yen to 2.9471/9495 from 2.9346/9371 but strengthened against the British pound to 5.5704/5742 from 5.5851/5895 and rose against the euro to 4.6156/6188 from 4.6236/6273.
The ringgit was mixed against ASEAN currencies.
It appreciated against the Singapore dollar to 3.2950/2975 from 3.3021/3049 but was lower against the Thai baht at 13.1508/1672 from 13.1354/1528.
The local note was almost flat against the Indonesian rupiah to 270.7/271.1 from 270.7/271.0 and was unchanged against the Philippine peso at 7.62/7.63. - Bernama
