KUALA LUMPUR, Jan 22, 2016:
The ringgit extended yesterday’s gains to close at a near three-week high against the US dollar today, tracking bullish momentum in emerging Asian currencies, dealers said.
At 5pm, the local unit strengthened to 4.2950/2040 from 4.3780/3870 against the greenback yesterday.
A dealer said that more investors eschewed the safe-haven investment as speculation on monetary easing by other major central banks rises.
Another dealer said the local and regional markets were lifted by the recovery in the oil prices, which had hit 12-year lows earlier in the week. “The oil prices had managed to recover some of the past days’ heavy losses.”
Brent crude was up 98 US cents at US$30.23 per barrel, while US crude was 85 US cents higher at US$30.38 per barrel.
Besides the extended rebound in oil prices, the local unit was also supported by growing hopes of further monetary stimulus from Europe and Japan, the dealer said.
On the local front, another dealer said Bank Negara Malaysia’s decision to raise liquidity in the banking system also helped strengthen the local note as there were renewed buying interest in the stock and bond markets.
The ringgit also traded higher against other major currencies.
It rose against the Singapore dollar to 3.0073/0157 from 3.0426/0506 yesterday, and went up against the yen to 3.6309/6388 from 3.7460/7550 yesterday.
It appreciated against the British pound to 6.1238/1384 from 6.2014/2151 and strengthened against the euro to 4.6566/6673 from 4.7711/7823 previously.
The market will be closed on Monday for Thaipusam holiday.