Ringgit extends uptrend against US dollar

KUALA LUMPUR: The ringgit extended its trend to appreciate against the US dollar today, to 3.86, a level that was last seen in April 20, 2016, on the back of the overnight policy rate increase yesterday by Bank Negara Malaysia (BNM) with local financial stocks reaping the benefit.
At 6 pm, the local note ended at 3.8690/8720 against the greenback from 3.8840/8870 on Thursday.
OANDA Head of Trading for Asia Pacific, Stephen Innes, said the ringgit has shown little sensitivity to the overnight blustery US dollar trading conditions as investors' confidence remained solid in favour of the Malaysian capital markets.
"With oil prices holding on to weekly gains and on the backdrop of a comprehensive global growth, the ringgit should continue to move higher despite the US dollar retracement overnight after US President Donald Trump said that his administration supports a strong dollar," Innes told Bernama.
On Thursday BNM raised OPR by 25 basis points to 3.25%.
The last time it changed its OPR was in July 2016 when it made a 25-basis-point cut.
Meanwhile, FXTM Research Analyst, Lukman Otunuga, said the week has been incredibly positive for the ringgit.
"It remains clear that the improving sentiment towards the Malaysian economy continues to heavily support the local currency.
"From a technical standpoint, the sustained weakness of the greenback at 3.90 level, could invite further declines moving forward," said Lukman.
The ringgit was also traded against a basket of major currencies.
It rose against the Singapore dollar to 2.9607/9648 from Thursday's 2.9746/9781 and gained versus the yen to 3.5456/5490 from 3.5630/5661 yesterday.
It went up against the euro to 4.8185/8234 from 4.8286/8327 yesterday and gained against the British pound to 5.5160/5222 from 5.5491/5537 on Thursday. — Bernama