Malaysia: Ringgit extends gains against US dollar on positive market sentiment

• Aug 26, 2021

KUALA LUMPUR, Aug 26 — The ringgit has extended its winning streak for the fourth consecutive day today, spurred by better risk appetite for risky assets and emerging currencies, underpinned by the positive market sentiment, dealers said.

At 9am, the local note stood at 4.1950/2000 versus the greenback, compared with Wednesday’s close of 4.2010/2055.

A dealer said the easing worries over the imminent tapering of stimulus by the United States Federal Reserve — coupled with rising hopes that the global economy would recover faster than expected on the back of rapid global vaccination progress — has driven investors to accumulate non-greenback assets.

Meanwhile, the Department of Statistics Malaysia announced yesterday that Malaysia’s Consumer Price Index grew 2.2 per cent year-on-year (y-o-y) in July 2021 to 122.5, marking its sixth consecutive month of being in the positive territory due to the low base effect.

At the opening, the ringgit was traded mixed against a basket of major currencies.

It rose against the Singapore dollar to 3.1010/1051 from 3.1056/1092 on Wednesday, strengthened versus the Japanese yen to 3.8116/8161 from 3.8254/8298, and increased against the euro to 4.9354/9413 from 4.9362/9415 yesterday.

However, the local note depreciated vis-a-vis the British pound to 5.7715/7784 compared with Wednesday’s close of 5.7667/7729. — Bernama