Ringgit closes higher against US dollar

KUALA LUMPUR: The ringgit closed higher against the US dollar, on the back of encouraging October trade data amid expectation that Bank Negara Malaysia will raise interest rates next year, a dealer said.

At 6 pm, the local unit was quoted at 4.0750/0780 against the US dollar from 4.0870/0890 on Friday.

OANDA Head of Trading Asia-Pacific Stephen Innes said while interest rates were expected to be raised next year, speculation of a stronger dollar may present some headwinds for the local note in the near-term.

"Real domestic and external positives for Malaysia should outweigh risky wagers on the dollar which should continue to support the ringgit's decisive run.

"However, the market should remain reticent as we enter holiday thin liquidity conditions with the ringgit expected to remain stable to slightly defensive as year-end US corporate demand picks up," said Innes.

Against a basket of major currencies, the ringgit was traded mostly higher, except against the euro.

The local note rose against the Singapore dollar to 3.0163/0192 from 3.0191/0217 on Friday and advanced against the yen to 3.5941/5974 from 3.5983/6011, previously.

Meanwhile, the ringgit depreciated against the euro to 4.8069/8116 from 4.7961/7997 on Friday and was traded higher against the pound at 5.4487/4535 from 5.5076/5107 previously. — Bernama