Ringgit closes higher against US dollar on buying interest

KUALA LUMPUR: The Malaysian ringgit closed higher against the US dollar today as mild buying interest emerged, lifting the local currency after an oversold condition last Friday, said a dealer.
At 6pm, the ringgit was quoted at 4.0400/0450 against the US dollar compared with 4.0500/0530 recorded at last Friday's close.
OANDA head of trading in Asia-Pacific, Stephen Innes, said the currency market was somewhat quiet as investors were more apt to cover positions ahead of the release of Malaysia's Consumer Price Index this Wednesday.
"This data is important, given Bank Negara Malaysia's (BNM) neutral stance from last week (on the monetary policy).
"But the market does think inflation is likely to drop to the 1.7% level following the zero-rated Goods and Services Tax, which will not change its view that BNM will hold the key interest rate for some time," he told Bernama today.
On news that China had filed a World Trade Organisation challenge today to the US President Donald Trump's proposal for a tariff hike on US$200 billion of Chinese goods, Innes said it was unlikely to change what the US intended to do.
"It is highly debatable that what the US is doing is illegal. However, markets are likely to think that a calmer situation will prevail," said Innes.
Against a basket of major currencies, the ringgit traded mostly lower, except against the yen.
It fell against the Singapore dollar to 2.9671/9716 from 2.9620/9651 on Friday, eased against the euro at 4.7284/7359 from 4.7122/7161 and declined against the British pound to 5.3591/3669 from 5.3189/3236.
However, the ringgit strengthened against the yen to 3.5943/5991 from 3.6006/6043. — Bernama