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HomeMalaysia NewsRinggit Slightly Gains Against US Dollar Amidst Positive Sentiment: Report

Ringgit Slightly Gains Against US Dollar Amidst Positive Sentiment: Report

The Malaysian Ringgit has shown a modest uptick against the US Dollar, reflecting an optimistic market sentiment. This gain suggests improved investor confidence in Malaysia’s economic prospects, but it remains a minor fluctuation. The currency’s performance will be closely monitored in the coming days as global economic conditions continue to evolve.

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KUALA LUMPUR (Sept 22) – The Malaysian ringgit experienced a slight uptick against the US dollar on Friday, bolstered by mild demand and a positive equity market sentiment. The greenback’s firmness did little to deter the ringgit’s upward movement, according to analysts.

At the close of the trading day at 6 pm, the local currency improved to 4.6865/6920 against the US dollar, a modest gain from Thursday’s close of 4.6890/6940.
Stephen Innes, Managing Director of SPI Asset Management, attributed this positive sentiment to talk of China potentially allowing a higher percentage of foreign investment in local companies. This development was seen as good news for local markets, leading investors to hold off on substantial dollar positions against the ringgit in anticipation of possible supportive policy announcements from China over the weekend.

Innes also noted that Malaysia’s Consumer Price Index (CPI) headline inflation remained relatively unchanged, providing mixed signals for currency markets. While it is good news for the economy, it also suggests that Bank Negara Malaysia may keep interest rates stable.
Mohd Afzanizam Abdul Rashid, Chief Economist of Bank Muamalat Malaysia Bhd, pointed out that the ringgit found support at RM4.6875 on Friday. The US dollar index (DXY) concurrently increased by 0.21% to 105.586 points.

Rashid suggested that the oversold condition of the ringgit may have led to increased buying activity among traders.

The ringgit also saw gains against other major currencies, including the Japanese yen, euro, and British pound. However, it exhibited mixed performance against other ASEAN currencies, weakening against the Singapore dollar and Thai baht but slightly appreciating against the Indonesian rupiah and remaining flat against the Philippine peso.
This development indicates a dynamic trading environment for the Malaysian ringgit amidst various economic factors and market sentiment.