Ringgit closes higher against US dollar

Fifty ringgit notes.

KUALA LUMPUR: The ringgit closed sharply higher against the US dollar today, on improved risk appetite, following eased trade tensions between the United States and China, said an analyst.

At 6pm, the ringgit jumped to 4.1450/1500 against the greenback against Monday’s 4.1630/1680.

FXTM Global Head of Currency Strategy and Market Research Jameel Ahmad said market sentiment for the domestic unit also strengthened amid an unexpected downbeat tone from the US Federal Reserve on interest rates expectations.

“This provides the needed catalyst for a great improvement in the performance of emerging market currencies,” he said in a note today.

The emerging market currencies remain the standout performer into the second trading day of the week, where currencies such as the Argentine peso managed to rebound over 3.0% and the South Africa Rand advanced 1.8%, said Jameel.

Back home, the ringgit ended mostly higher against other major currencies.

It rose against the Singapore dollar to 3.0393/3441 from Monday’s close of 3.0474/0515, appreciated against the British pound to 5.3089/3166 from 5.3195/3275 and appreciated against the euro to 4.7299/7376 versus 4.7312/7373 yesterday.

However, the ringgit declined against the yen to 3.6756/6810 from 3.6695/67848 yesterday.