KUALA LUMPUR: The ringgit revisited the 3.92 level to end higher against the US dollar on Tuesday, as investors took positions ahead of the release of Malaysia’s gross domestic product (GDP) data on Friday.
At 6 pm, the local currency strengthened to 3.9220/9260 against the greenback, from Monday’s close of 3.9325/9375.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said China’s authorities have advised their financial institutions to limit their exposure to US Treasury bonds. This has led to further appreciation of the Chinese yuan against the greenback, helping to lift the ringgit as well.
He noted that the ringgit maintained its appreciation bias against the greenback, climbing to RM3.9215 during the morning session.
"The ringgit appears to be tracking a similar trend with the yuan, given the close relationship between the ringgit and the yuan at a more than 90 per cent coefficient of correlation. For now, the ringgit looks well supported, and the incoming (Malaysian) GDP data this Friday could provide further justification for its appreciation against the US dollar,” he told Bernama.
At the close, the ringgit traded lower against a basket of major currencies.
It fell versus the Japanese yen to 2.5264/5292 from 2.5104/5137 at Monday’s close, depreciated vis-à-vis the British pound to 5.3610/3664 from 5.3482/3550, and eased against the euro to 4.6731/6778 from 4.6647/6707 previously.
The local note was mostly higher against its ASEAN peers, but fell against vis-à-vis the Singapore dollar to 3.0994/1028 from 3.0979/10.21.
However, the ringgit inched up against the Indonesian rupiah to 233.3/233.6 from 234.0/234.4, rose versus the Thai baht to 12.5866/6051 from 12.5876/6101, and was higher versus the Philippine peso at 6.70/6.71 from 6.72/6.74 previously. - Bernama
