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Ringgt ends stronger as dollar remains under pressure

01 Jun 2020 / 18:57 H.

KUALA LUMPUR: The ringgit ended higher today as the dollar lost its lustre in the global market amid the Covid-19 economic recovery optimism.

At close, the ringgit stood at 4.3150/3200 against the greenback compared with Friday’s 4.3450/3500.

AxiCorp global chief market strategist Stephen Innes said the dollar was sold on general global reopening optimism.

In addition, local risk sentiment has been improving due to a relief rally as US President Donald Trump’s reaction to a Hong Kong law fell well short of markets fears, as some had even expected tariffs to escalate.

“This strengthens the yuan and benefits regional currencies, and the dollar is being sold on general global reopening optimism,” he told Bernama.

On Friday, Trump said he would eliminate special trade privileges for Hong Kong in reaction to China’s decision to impose a national security law on the financial hub, but did not announce any specific measures against Hong Kong.

Meanwhile, Innes said oil prices were stabilising at the recent high level as it is expected that the Organisation of the Petroleum Exporting Countries (OPEC)+ production agreement will be extended for three months.

OPEC was reportedly considering convening a meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.

He said besides central bank meetings such as the European Central Bank, Reserve Bank of Australia Bank of Canada, the US employment report for May is a potential flash points for investors this week.

Meanwhile, the ringgit was traded mostly higher against a basket of benchmark currencies, except against the British pound, where it declined to 5.3454/3533 from 5.3435/3514.

The local note rose against the Singapore dollar to 3.0620/0660 from 3.0768/0810, gained against the Japanese yen to 4.0099/0156 from 4.0528/0586 and was higher against the euro at 4.7953/8021 from 4.8369/8433 last Friday. - Bernama

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