Ringgit marginally up for second consecutive day

Most Asian currencies, including the ringgit, have strengthened despite the rise in Covid-19 cases in China, says an analyst. – The Malaysian Insight file pic, November 23, 2022.

THE ringgit concluded today’s trading session slightly stronger against the United States dollar due to favourable external factors, said a dealer. 

At 6pm, the local note traded at 4.5725/5775 against the greenback compared with yesterday’s close of 4.5750/5835. 

SPI Asset Management managing director Stephen Innes said the ringgit, alongside Asian currencies, ignored the uptick in Covid-19 cases in China, referring to the more bullish outlook held by regulators. 

To recap, China’s government is moving away from its zero-Covid policy and reducing economic pressures. 

“On the US Federal Reserve’s front, investors are strongly biased to believe that headline inflation will continue to ease substantially over the next month or two. 

“As a result, the dollar is coming under more pressure, and risk assets are getting lifted. This is greatly supporting the ringgit ahead of the FOMC statement,” he told Bernama. 

He emphasised that the moves are the positive drivers that should send the ringgit stronger by year-end.

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

It rebounded versus the Singapore dollar to 3.3053/3094 from 3.3169/3235 at yesterday’s close and rose vis-a-vis the Japanese yen to 3.2344/2382 from 3.2380/2445 yesterday. 

The local note however fell further against the euro to 4.7202/7254 from 4.6981/7068 and depreciated versus the British pound to 5.4495/4555 from 5.4223/4324. – Bernama, November 23, 2022.

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