KUALA LUMPUR: The ringgit appreciated against the US dollar on Tuesday rebounding from yesterday’s loss, following weaker demand for the greenback, said an analyst.
At 6 pm, the local currency strengthened to 4.4705/4750 against the greenback, compared with Monday’s close of 4.4765/4820.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit continued to stage a rebound today, with the USD/MYR going as high as RM4.4738 in the morning session but recovered to around RM4.4645 during the afternoon.
"It seems the euphoria over Donald Trump 2.0 may have subsided as traders and investors began to reassess their thoughts on the possible policies to be implemented by the President-elect next year.
"Financial markets may have overpriced the eventual outcome, leading to a flight to safety. Having said that, market sentiments will continue to err on the cautious side,” he said.
Meanwhile, the ringgit traded mostly higher against a basket of major currencies.
It rose against the British pound to 5.6449/6506 from 5.6525/6594 and strengthened against the euro to 4.7150/7198 from 4.7294/7352.
However, it depreciated against the Japanese yen to 2.9078/9109 from 2.8914/8953.
The local unit also displayed mixed movements against regional currencies.
It strengthened against the Philippine peso to 7.60/7.61 from 7.63/7.64 and gained against the Indonesian rupiah to 282.1/282.5 from 282.2/282.7.
Conversely, it weakened against the Singapore dollar to 3.3345/3381 from 3.3307/3351 and slipped against the Thai baht to 12.9201/9384 from 12.8591/8808. - Bernama
