KUALA LUMPUR: The ringgit traded higher against the US dollar on Monday after Malaysia’s December Industrial Production Index (IPI) came in above market expectations, signalling that the domestic economy remains on a firm footing.
At 6 pm, the ringgit increased by 0.33 per cent to 3.9325/9375 against the greenback compared with last Friday’s close of 3.9440/9525.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said emerging-market currencies are mostly stronger against the US dollar today.
“There is a sense of risk-on mode in Asia following the election results in Thailand and Japan, which led traders to be more constructive on Asian currencies.
“Hence, expect the ringgit to remain well supported in the near term,” he told Bernama.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It gained versus the Japanese yen to 2.5104/5137 from 2.5111/5167 at Friday’s close, appreciated vis-à-vis the British pound to 5.3482/3550 from 5.3548/3663, but eased against the euro to 4.6647/6707 from 4.6508/6608 previously.
The local note was also mostly lower against its ASEAN peers, except strengthening against the Philippine peso to 6.72/6.74 from 6.73/6.75 previously.
However, the ringgit edged down vis-à-vis the Singapore dollar to 3.0979/10.21 from 3.0965/1034, fell versus the Indonesian rupiah to 234.0/234.4 from 233.6/234.3 and declined versus the Thai baht to 12.5876/6101 from 12.4609/4933. – Bernama
