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Ringgit rebounds on better market sentiment

27 Jan 2021 / 19:40 H.

KUALA LUMPUR: The ringgit snapped its three-day losing streak to close higher against the US dollar today as improved market sentiment spurred risk appetite for emerging currencies, dealers said.

At the close, the local note appreciated to 4.0440/0470 versus the greenback from 4.0470/0500 on Tuesday.

“Sentiment in the market recovered following gains in the crude oil prices as well as the bullish global economic outlook by the International Monetary Fund (IMF),” a dealer told Bernama.

In an update to its World Economic Outlook, the IMF said the global economy is expected to experience a 5.5 per cent growth this year and 4.2 per cent next year.

The 2021 forecast is revised higher by 0.3 percentage point, reflecting expectations of a vaccine-powered strengthened activity later in the year and additional policy support in a few large economies.

The global growth contraction for 2020 is projected to be at -3.5 per cent, a 0.9 percentage point higher than the earlier projection.

Meanwhile, crude oil prices surged following the lower-than-expected US crude stockpiles as well as on anticipation of better demand from China on the back of its lowest daily rise in Covid-19 cases.

At press time, the benchmark Brent crude rose 0.55 per cent to US$56.22 per barrel.

Against other major currencies, the ringgit was traded mostly lower.

It depreciated against the Singapore dollar to 3.0491/0520 from 3.0477/0511 on Tuesday, fell versus the British pound to 5.5536/5594 from 5.5270/5327 but appreciated vis-a-vis the euro to 4.9021/9131 from 4.9078/9131 yesterday.

The local currency also rose against the Japanese yen to 3.8956/8996 from 3.8988/8025 previously.

The local market will be closed tomorrow in conjunction with the Thaipusam public holiday. — Bernama

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