Thailand
Malaysia: Ringgit rallies against US dollar, jumps 360 basis points
KUALA LUMPUR, Aug 30 — The ringgit ended stronger against the US dollar as fears over tapering by the US Federal Reserve (US Fed) wane with a longer path to higher rates expected.
At 6pm, the local note jumped 360 basis points to 4.1530/1575 versus the greenback from Friday’s close of 4.1890/1930.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said US Fed chairman Jerome Powell’s speech highlighted that tapering might begin at the end of this year but that did not mean that rate hikes would happen early.
“Perhaps the swearing-in ceremony of the new Cabinet ministers also instilled confidence among investors towards Malaysia’s leadership and provided support for the ringgit,” he told Bernama.
Meanwhile, the local note was traded higher against a basket of major currencies.
The ringgit appreciated vis-a-vis the euro to 4.9001/9054 from Friday’s close of 4.9254/9301, rose against the Japanese yen to 3.7813/7854 from 3.8044/8084, climbed against the British pound to 5.7116/7178 from 5.7427/7482 and improved at 3.0848/0886 versus the Singapore dollar compared with 3.1009/1041 at Friday’s close. — Bernama