Ringgit continues to close higher against US dollar

Malaysian ringgit notes are seen among US dollar bills in this photo illustration taken in Singapore in this August 24, 2015 file photo. — Reuters pic

Follow us on Instagram and subscribe to our Telegram channel for the latest updates.

KUALA LUMPUR, Oct 21 — The ringgit continued to close higher against the US dollar as it has been experiencing correction and very much aligned with the overbought condition as signalled by the technical indicators, said an analyst.

At 6pm, the local note climbed to 4.1565/1595 from 4.1580/1615 recorded at Wednesday’s close.

However, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the local note would remain constructive as commodity prices for Brent crude and crude palm oil have been well supported.

“Plus, the reopening of the economy will accelerate the economic activities following the lifting of the interstate travel ban,” he told Bernama, adding that the tabling of Budget 2022 would shed more light on Malaysia’s economic prospects and help to improve the appetite towards the ringgit.

Meanwhile, OANDA Asia Pacific senior market analyst Jeffrey Halley said the US dollar has been going tough this week and fell once again overnight, despite the rising bond yields after a weak 20-year auction.

“With the US earnings season outperforming and knocking the Federal Reserve (Fed) taper story from investors minds, progress on the much slimmed down Biden fiscal packages and commodity-centric currencies outperforming, the US dollar remains under pressure.

“Another driver appears to be rising rate expectations among some trading partners, offsetting the boost from the Fed taper trade,” he said.

The local note was traded mostly lower against a basket of major currencies at the close today, except against the Singapore dollar where it climbed up to 3.0908/0933 from 3.0919/0947 at Wednesday’s close.

The ringgit slipped against the yen at 3.6441/6471 from 3.6327/6361, fell against the British pound at 5.7360/7401 from 5.7260/7308, and narrowed against the euro to 4.8386/8421 from 4.8328/8369 previously. — Bernama