KUALA LUMPUR: The ringgit closed higher against other major currencies today on positive momentum as investors await the US Federal Reserve’s decision on interest rates.
At 6 pm, the local unit rose to 4.3450/3500 versus the greenback from 4.3610/3680 recorded at Tuesday’s close.
An analyst said with economies emerging from lockdowns and the Organisation of the Petroleum Exporting Countries production cuts set to take effect this week, this would suggest that demand for oil has troughed.
“Supply has more than peaked, which from a fundamental perspective, should provide some semblance of comfort for the ringgit,” he said.
The Fed is expected to announce its interest rate decision at 2 am tomorrow (Malaysian time). Meanwhile, investors will look for guidance on the US central bank’s future path of the lending rates as the country looks toward a gradual economy reopening.
At the closing, the local unit was traded higher against other major currencies.
It improved against the Singapore dollar to 3.0720/0757 from 3.0787/0847 at Tuesday’s close and strengthened against the yen to 4.0790/0849 from 4.0872/0945.
Vis-a-vis the pound, the ringgit rose to 5.3948/3023 from 5.4425/4521, while against the euro, it advanced to 4.7165/7228 from 4.7404/7493 previously. – April 29, 2020, Bernama
