Ringgit closes higher against the US dollar

KUALA LUMPUR: The ringgit ended slightly higher against the US dollar at the close today as the greenback retreated, struggling to find demand on Tuesday, following the three-day weekend.

At 6 pm, the local note rose to 4.4205/4255 against the US dollar from last Friday’s close of 4.4225/4260.

SPI Asset Management managing partner Stephen Innes said the ringgit also strengthened today lifted by sentiment brought about by China which had reduced inbound travel quarantine, but pared earlier gains as local investors needed to see Chinese tourists arriving in Malaysia.

“It still is a positive step forward for China’s reopening. However, the reopening comes with a double edge sword for inflation. The good news is that as China reprises its role as a supplier of low cost goods globally and supply chain bottlenecks ease.

“But, the bad news is as growth accelerates through the first quarter, China’s insatiable demand for raw materials and all things energy will push up prices of those commodities, much to the consternation of the Federal Reserve and the European Central Bank.

“So it’s been a bit of a stalemate in ringgit trading today,” he told Bernama.

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

The local note strengthened against the British pound to 5.3267/3327 from 5.3349/3391 on last Friday and appreciated vis-a-vis the Japanese yen to 3.3182/3222 against 3.3352/3381 previously.

The ringgit slipped versus the Singapore dollar to 3.2847/2889 from last Friday’s close of 3.2754/2785 and declined against the euro to 4.7092/7145 from 4.6927/6964. – Bernama

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