Ringgit opens slightly higher vs greenback

KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Thursday, supported by the yuan’s stabilisation after the People’s Bank of China decided against cutting rates earlier this week, a move seen as a positive signal.

At 8 am, the ringgit was trading at 4.4835/4900 against the greenback, up from 4.4845/4900 at Tuesday’s close.

SPI Asset Management managing partner Stephen Innes noted that China’s plan to issue three trillion yuan in special treasury bonds next year to boost the economy is also viewed as positive news for the ringgit.

However, he added that despite these favourable developments, the spotlight remains on the incoming US administration’s trade policy, which could continue to support the US dollar as Inauguration Day approaches.

“The shifting trade dynamics and upcoming policy announcements will be key factors influencing the ringgit’s performance in the near future,” he told Bernama.

Meanwhile, UOB Kay Hian Wealth Advisors investment research head Mohd Sedek Jantan said the local currency opened higher against the greenback following the rise with stronger US economic growth data and expectations that global economic activity will drive oil demand upwards.

He noted that both Brent and WTI oil prices closed higher on Tuesday.

“Additionally, the Asian Dollar Index today also shows an uptrend, generally indicating that the value basket of Asian currencies is strengthening against a US dollar,” he said.

The ringgit was traded mostly lower against several major currencies.

It appreciated against the Japanese yen to 2.8534/8579 from Tuesday’s close of 2.8547/8586 but fell versus the British pound to 5.6237/6318 from 5.6209/6278 and was weaker vis-a-vis the euro to 4.6624/6692 from 4.6603/6660.

The local note showed mixed performance compared to ASEAN currencies.

It weakened against the Singapore dollar, trading at 3.2989/3041 compared with 3.2979/3024 previously and was flat against the Philippine peso at 7.66/7.68.

It was almost flat versus the Indonesian rupiah at 276.8/277.4 from 276.9/277.4 but rose vis-a-vis the Thai baht to 13.1066/1363 from 13.1283/1517.