KUALA LUMPUR: The ringgit closed sharply higher against the US dollar for the second consecutive day today, thanks to the 2020 Economic Stimulus Package that helped boost appetite in the market.
The local note finished strongly at 4.2100/2200 against the greenback compared with 4.2230/2280 recorded at 6 pm yesterday.
Earlier, the government introduced the economic stimulus package worth RM20 bil to safeguard the country’s economy from impacts associated with the Covid-19 outbreak.
Interim Prime Minister Tun Dr Mahathir Mohamad said the stimulus package would assist businesses most adversely affected by Covid-19 spread to facilitate their cash flow and reduce business costs,
Among the measures is to allow the deferment of monthly income tax payments for businesses in the tourism sector from April to September 2020.
Dr Mahathir also assured that Malaysia has enough money to fund the stimulus package, alluding to the almost RM2 tril of savings in Bank Negara Malaysia, Tabung Haji, Retirement Fund Inc (KWAP) and the Employee Provident Fund (EPF).
A dealer said the stimulus package helped ease worries in the market over the growth outlook for the economy.
“The market reacted positively to the announcement. This also offset US dollar sentiment, for which demand has significantly increased as a safe haven asset following the Covid-19 outbreak,” he added.
Meanwhile, the ringgit was traded mostly higher against other major currencies.
It rose against the Singapore dollar to 3.0181/0264 from 3.0205/0245 on Wednesday, increased versus the Japanese yen to 3.8210/8308 from 3.8280/8335 and strengthened against the British pound to 5.4317/4459 from 5.4679/4761 yesterday.
The local note, however, depreciated vis-a-vis the euro to 4.6032/6154 from 4.5980/5047 previously. – Feb 29, 2020, Bernama
