KUALA LUMPUR: The ringgit settled on a positive note against the US dollar today, extending gains for four straight trading days, lifted by continued support for the local note amid higher global crude oil price, said an analyst.
At 6 pm, the local currency stood at 4.0835/0890 versus the greenback compared with Tuesday’s close of 4.0850/0900.
Axi chief global market strategist Stephen Innes said the ringgit has been in a holding pattern, which on the one hand, was a bit surprising as the US dollar is losing its safe-haven appeal, while oil prices are rising with the benchmark Brent crude oil apparently headed to US$50 per barrel in the not too distant future.
“I think the market is begging to realise a lot of good news is in the price, and traders are turning a bit more defensive ahead of the US thanksgiving and of course, will be very cautious with profit heading into year-end.
“But in the currency market, traders are taking a defensive tack ahead of the release of tonight’s Federal Open Market Committee meeting minutes for clues on the direction of the monetary policy,” he told Bernama.
Meanwhile, on the local front, the positive sentiment that Budget 2021 would likely be approved in Parliament (tomorrow), following Barisan Nasional’s declaration of support for it, had also fuelled demand for the ringgit today.
Against other currencies, the ringgit rose against the Singapore dollar to 3.0408/0454 from 3.0435/0484 on Tuesday, strengthened versus the Japanese yen to 3.9125/9185 from 3.9192/9251 and appreciated against the British pound to 5.4478/4568 from yesterday’s 5.4580/4663.
The local currency however, decreased vis-a-vis the euro to 4.8606/8684 from 4.8538/8614 previously. — Bernama
