KUALA LUMPUR: The ringgit rebounded to close higher against the US dollar today, in line with other emerging currencies, taking the cue from a firmer equity market and steady Chinese yuan, a dealer said.
At 6 pm, the ringgit was quoted at 4.1080/1110 against the US dollar from 4.1125/1155 on Monday.
The dealer said the Chinese yuan benefitted from the stronger tone in the country’s equity markets today, but gains were capped by lingering worries surrounding the widening coronavirus outbreak.
He said China assuaged fears around the economic impact of the coronavirus outbreak by trimming interest rates and injecting 1.2 tril yuan of liquidity into the markets to mitigate the economic damage caused by the virus.
However, he noted that the US dollar also remained firm against its major rivals as the US economic activity in the manufacturing sector, as reported by the Institute for Supply Management, rebounded in January after a five-month contraction.
“The US dollar is expected to remain bullish in the short term as persistent concerns on the widespread occurrence of coronavirus would serve to benefit the currency and drag down overall emerging market currencies,” he added.
Against other major currencies, the ringgit was also traded higher.
It rose against the Singapore dollar to 2.9970/0001 from 3.0051/0084 on Monday and appreciated vis-a-vis the Japanese yen to 3.7654/7691 from 3.7896/7931 yesterday.
The local currency also strengthened against the euro to 4.5410/5459 from 4.5529/5579 yesterday and increased against the British pound to 5.3466/3521 from 5.3792/3839 previously. – Feb 4, 2020, Bernama
