Ringgit ends flat against US dollar
KUALA LUMPUR: The ringgit recouped earlier losses to close flat against the US dollar today, amid a weaker greenback and firm oil prices, said a dealer.
At 6pm, the ringgit stayed at last Tuesday's close of 3.9480/9530 to the US dollar.
Today was the first day of trading for the ringgit following the 14th General Election on Wednesday last week, which saw Pakatan Harapan (PH) form the new government, the dealer said.
The market was closed on Wednesday for polling day, followed by two day public holidays after the PH victory.
FXTM Global Head of Currency Strategy and Market Research Jameel Ahmad said the decision by Malaysia to call a two-day public holiday and closed trading following the unexpected election results seemed to have worked in its favour.
He said the Malaysian markets showed minimal signs of investor panic as trading reopened today, with the ringgit declining only 0.9% during early morning trade.
"This could be considered as small losses for the local note considering that it had not priced in the defeat by the Barisan Nasional coalition that had ruled Malaysia for six decades.
"The relatively smooth transition of power was likely a catalyst behind the smaller-than-expected losses in the ringgit," he said.
This reduced anxiety that Malaysia would come under a period of uncertainty, he said, adding the likelihood that the election outcome uncertainties would continue to fade would present an opportunity for the ringgit to recover.
Towards the end of the week, the market was expected to begin refocusing on the macro aspects of the Malaysian economy, said Jameel.
The gross domestic product figures scheduled for release on Thursday this week would provide further market direction, he added.
The ringgit traded lower against a basket of major currencies, except the Japanese yen.
It was lower against the Singapore dollar at 2.9624/9675 from 2.9498/9540 on Tuesday last week and slipped against the euro to 4.7281/7349 from 4.6898/6962.
The local note depreciated against the British pound to 5.3610/3694 from 5.3353/3437 last Tuesday but rose against the Japanese yen to 3.6022/6081 from 3.6250/6299 previously. — Bernama