KUALA LUMPUR: The ringgit extended its gains to close stronger against the US dollar yesterday, supported by easing US-China trade tension and weaker US economic data that initially pressured the dollar.
By 6pm, the ringgit appreciated to 4.4080/4110 from 4.4165/4200 at last 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.
Bank Muamalat Malaysia Bhd’s chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit appreciated against the US dollar yesterday to as high as RM4.3925 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.
