by BERNAMA / pic by MUHD AMIN NAHARUL
KUALA LUMPUR – The ringgit slipped slightly against the US dollar today, despite reduced fears of the Omicron variant on the global economic recovery, an analyst said.
At 9am, the local note stood at 4.1950/2000 versus the greenback from 4.1935/1980 at Friday’s close.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said studies on Omicron, which took the limelight last week, would provide the ground for the global economic recovery to proceed without a hitch.
“In other words, the risk-on mode could prevail, leading to better demand for emerging market currencies,” he told Bernama.
At present, he said the ringgit seems likely to trade within a range of RM4.190 with RM4.1862 for the last week of 2021, being the immediate support level.
Echoing similar sentiment, Kenanga Research also said the ringgit may continue its positive momentum against the greenback this week as global economic sentiment improves.
“Additionally, the local note may be supported by higher crude oil prices, favourable bond yield differentials, better-than-expected trade figures, and improving domestic COVID-19 situation,” it said in a note.
Meanwhile, the ringgit was traded mixed against a basket of other major currencies.
It appreciated against the British pound to 5.6192/6259 from 5.6226/6287 at Friday’s close and climbed against the euro to 4.7479/7536 from 4.7567/7618.
However, the domestic unit fell versus the Japanese yen to 3.6663/6710 from 3.6660/6702 and depreciated vis-a-vis the Singapore dollar to 3.0900/0944 from 3.0887/0954 previously.