kuala lumpur: The ringgit corrected from an oversold position and ended Tuesday higher against the US dollar.
As of 6pm, the ringgit had edged up to 4.7825/7865 against the US dollar from Monday’s close of 4.7900/7975, its lowest against the US dollar in 25 years.
Muamarat Malaysian Bank chief economist and social finance officer Dr Mohd Afzanizam Abdul Rashid said the bargain-hunting activity suggested further appreciation of the ringgit could occur in the near future.
In addition, he believed that any positive developments regarding the Israel-Hamas conflict could generate renewed interest in the ringgit.
“Yesterday, two hostages were released by Hamas as humanitarian aid arrived in Gaza.
“However, markets remain anxious about the possibility of an Israeli ground attack and how the dynamics of the current conflict would change if it were to occur,” he said.
Bank Negara Malaysia said the current movement of the ringgit appears to be heavily influenced by global events and does not reflect the country’s economic fundamentals.
BNM Governor Datuk Abdul Rashid Abdul Ghafoor will therefore assure that the central bank will do whatever is necessary to ensure that the ringgit continues to adjust in an orderly manner.
Meanwhile, the ringgit weakened against a basket of major currencies.
Against the euro it fell to 5.0881/0924 from Monday’s closing price of 5.0736/0815, against the British pound it fell from yesterday’s 5.8179/8270 to 5.8557/8606, and against the Japanese yen it fell from 3.1935/1985 to 3.1960/1989.
On the other hand, local banknotes almost depreciated against other Asian currencies except for the Philippine peso, rising to 8.42/8.43 from 8.43/8.44 previously.
The ringgit fell against the Indonesian rupiah to 301.7/302.1 from Monday’s close of 300.5/301.2, fell slightly against the Thai baht to 13.2186/2352 from yesterday’s 13.1104/1359, and against the Singapore dollar to 3.5003/5035 from 3.4731. It fell. /4767. – Bernama
