Ringgit rebounds to close marginally higher

KUALA LUMPUR • The ringgit rebounded after six consecutive days of losses to close marginally higher against the US dollar today on renewed buying interest and higher oil prices, ahead of the interest rate decision by the US Federal Reserve (Fed).

At 6pm, the local currency improved to 4.5520/5550 against the greenback from 4.5585/5595 at yesterday’s close.

At the time of writing, oil benchmark Brent crude price had increased by 2.33% to US$92.73 (RM422.85) per barrel.

ActivTrades trader Anderson Alves said investors are likely to keep a close eye on the US dollar as the US Treasury yields were firmer across the curve.

“On the other hand, a dovish unwinding and support to risk assets could be seen across the board if the Fed does not deliver a hawkish move and push back from recent rhetoric to try to align market pricing at this juncture in the tightening cycle,” he said in a note today.

On the local front, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said a flexible ringgit exchange rate is important in balancing the need to absorb external shocks to support domestic economic activity.

He said the government, through Bank Negara Malaysia, has no intention to peg the ringgit to the US dollar at the moment as the move poses a huge risk and trade-off.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

It had appreciated against the Japanese yen to 3.1633/1656 from 3.1725/1734 at yesterday’s close and increased versus the Singapore dollar to 3.2217/2243 from 3.2341/2353 previously.

The local note also rose against the British pound to 5.1629/1663 from 5.2049/2060 on Tuesday and climbed vis-a-vis the euro to 4.5197/5227 from 4.5608/5618 previously. — Bernama/pic by TMR