KUALA LUMPUR: The ringgit closed stronger versus the US dollar as US-China trade deal optimism lifted demand for the local unit.
At 6pm, the ringgit was up at 4.0610/0660 against the greenback compared to 4.0730/0760 at Wednesday’s close.
AxiTrader chief Asia market strategist Stephen Innes said improving risk sentiment and the US-China phase one deal should be good for exporters like Malaysia.
Chinese vice premier Liu He and US President Donald Trump signed the phase one trade pact on Wednesday in Washington.
The pact includes a pledge by China to purchase U$200 billion worth of US goods over the course of two years.
In return, the US is to reduce tariffs on US$120 billion worth of Chinese goods and cancel duties on Chinese-made products such as mobile phones, toys and laptops.
However, the Trump administration will leave the 25% tariff on U$250 billion worth of Chinese imports in place, pending the second phase of the trade deal.
Asia-Pacific Economic Cooperation (APEC) Secretariat executive director Tan Sri Dr Rebecca Fatima Sta Maria today said global trade and the investment climate will likely be positive moving forward, as a major uncertainty has been removed following the signing of the US-China phase one trade deal.
Overall, the ringgit was traded mostly higher against other major currencies.
It went up against the Singapore dollar to 3.0175/0224 from 3.0232/0256 at Wednesday’s close, and appreciated against the Japanese yen to 3.6911/6967 versus 3.7073/7111 yesterday.
The local currency also rose against the euro to 4.5288/5356 compared to 4.5335/5373 but declined against the British pound to 5.3004/3082 from 5.2921/2968 previously. - Bernama