KUALA LUMPUR: The ringgit bounced back to close higher against the US dollar on Friday, tracking the performance of emerging currencies, as more factors including US interest rate and geopolitical tensions continue to weigh on the greenback.
At 6pm, the local unit was quoted at 4.1880/1910 against the US dollar from 4.2040/2070 on Thursday.
Inter-Pacific Research Sdn Bhd Head of Research, Pong Teng Siew, said the negative sentiment lingering the dollar had sent it lower this week.
“It is more on the weakness of the dollar rather than a stronger ringgit. It is because of the odds of a December rate hike by the Federal Reserve is diminishing,” he told Bernama.
On the local front, Pong said the re-rating trend on Malaysia’s credit rating had supported the local unit as well.
Malaysia’s lower five-year credit-default swaps also provide a fillip to the currency.
The US dollar’s weak performance was also due to the second ballistic missile launched by North Korea earlier today.
Against other major currencies, the ringgit was traded mixed.
It inched up against the Singapore dollar to 3.1128/1614 from 3.1129/1165 on Thursday and vis-a-vis the pound, it went down to 5.6873/6926 from yesterday’s 5.5510/5553.
The local note improved versus the yen to 3.7648/7685 from 3.8069/8100 on Thursday and was better against the euro at 4.9988/9041 from 5.0007/0051 yesterday. — Bernama
Source: The Sun Daily