kuala lumpur: The ringgit rose further, rising against the US dollar on the last trading day of 2022, while hopes of a resumption of economic activity in China and a slowdown in the pace of US interest rate hikes boosted the local currency, dealers said.
The US dollar retreated after US jobs data showing rising unemployment benefits raised expectations that the US Federal Reserve would become less hawkish on interest rates.
At 6pm, the local currency rose from Thursday’s close of 4.4180/4215 to 4.3995/4095.
However, dealers noted that the safe haven currency is set for its best year since 2015, with the US dollar index at 104.9, supported by a rate hike by the Fed.
He also said strong momentum in domestic equities was also supporting the ringgit.
Steven Innes, managing partner at SPI Asset Management, told Bernama that the ringgit saw a “very strong” year-end gain, aided by the resumption of economic activity in China.
“No news is seen as good news, with no negative headlines from areas where Chinese travelers are newly arriving from a three-year mandatory travel ban.
“This is also great news for Chinese tourist destinations such as Thailand and Malaysia, and a positive for the local currency,” he said.
However, the ringgit traded variably against a basket of major currencies.
Thursday’s close rose against the British pound from 5.3255/3297 to 5.2930/3051 and against the euro from 4.7078/7116 to 4.6881/6988.
The ringgit fell to 3.3307/3385 against the Japanese yen on Thursday from 3.3061/3090 and against the Singapore dollar to 3.2786/2865 from 3.2770/2800 yesterday. – Bernama
