Ringgit notes are seen in this photo taken in Kuala Lumpur August 4, 2019. — Picture by Ahmad Zamzahuri
KUALA LUMPUR, May 20 — The ringgit traded more favourably against the US dollar on the last day of the week, ending on a firmer note amid improved sentiment following China’s move to cut a key interest rate to boost its economy, analysts said.
At 6pm, the local currency stood at 4.3870/3910 versus the greenback compared with yesterday’s close of 4.4030/4060.
SPI Asset Management managing partner Stephen Innes said however, at this stage of trading, the ringgit’s strength also reflected investors pulling back from long US dollar exposures.
“In Asia’s foreign exchange, the periphery would benefit from any easing of China concerns.
“I think the undervalued ringgit could be an excellent rally candidate with Bank Negara Malaysia already increasing interest rates,” he told Bernama.
The ringgit was, however, traded mostly lower against a basket of major currencies.
It depreciated against the Singapore dollar to 3.1845/1879 from yesterday’s close of 3.1752/1778, dropped vis-a-vis the euro to 4.6445/6488 from 4.6223/6254, and dipped versus the British pound to 5.4732/4782 from 5.4584/4621.
However, the ringgit appreciated versus the Japanese yen to 3.4236/4270 from 3.4495/4524 yesterday. — Bernama
