Ringgit closes higher as demand for US dollar weakens

At close, the local note was traded at 4.3990/4030 versus the US dollar compared to yesterday’s closing rate of 4.4190/4240

THE ringgit appreciated against the US dollar at the close today amid weakening demand for the greenback, tracking the US banking crisis.

At 6pm, the local note was traded at 4.3990/4030 versus the US dollar compared to yesterday’s closing rate of 4.4190/4240.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said as the ringgit breached its support level of RM4.4099, the next support level is located at RM4.3297.

“This implies that the ringgit needs a strong catalyst to appreciate which can be none other than the US Federal Reserve (Fed) taking a dovish stance in May’s Federal Open Market Committee (FOMC) meeting.

“Should the banking crisis in the US, sparked by the Silicon Valley Bank and Signature Bank, be contained, the ringgit could potentially be stronger than what it is today,” he told Bernama.

Looking ahead, Mohd Afzanizam said the market is also anticipating the release of US consumer confidence data due later today, and Bank Negara Malaysia’s (BNM) annual report tomorrow, for fresh leads.

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

The local note rose against the British pound to 5.4046/4095 from yesterday’s close of 5.4159/4221, improved versus the Japanese yen to 3.3606/3642 from 3.3612/3653, but marginally eased vis-a-vis the euro to 4.7580/7623 from 4.7579/7633 previously.

At the same time, the ringgit was traded mixed against Asean currencies.

It gained versus the Singapore dollar to 3.3100/3135 from 3.3151/3191 and went up vis-a-vis the Philippine peso to 8.07/8.09 from 8.14/8.15 previously.

The local note decreased against the Thai baht to 12.8288/8457 from 12.8236/8440 and fell against the Indonesian rupiah to 291.60/291.90 from yesterday’s 291.30/291.90. — Bernama / pic TMR File


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