THE ringgit ended higher against major currencies on Thursday, buoyed by improved crude oil prices and the US Federal Reserve’s decision to keep its interest rate at the current level (near zero) until the economy recovers.
At 6pm, the local unit rose to 4.2950/2050 versus the greenback from 4.3450/3500 recorded at Wednesday’s close.
An analyst said the global economy is recovering and will recover gradually, sending positive sentiment to the market and providing favourable tailwinds for the local currency.
“The flattening of the Covid-19 infections curve in Malaysia, coupled with the reopening of businesses, will woo foreign and local investors back into the currency market,” he said.
Meanwhile, oil prices rallied following the reopening of economies, with Brent crude jumping 12.42% to US$25.34 per barrel.
Separately, following the Fed decision, OCBC Bank expects Bank Negara Malaysia to hold its rate unchanged at its scheduled Monetary Policy Committee meeting on May 5.
At the closing, the local note improved against the Singapore dollar to 3.0461/0543 from 3.0720/0757 at Wednesday’s close and strengthened against the yen to 4.0253/0358 from 4.0790/0849.
Vis-a-vis the pound, the ringgit went up to 5.3675/3808 from 5.3948/3023, while against the euro, it advanced to 4.6639/6765 from 4.7165/7228 previously. — April 30, 2020, Bernama
