Ringgit continues upward momentum against dollar

KUALA LUMPUR: The ringgit continued its upward momentum against the greenback today, supported by better than expected exports data.

At 9am, the ringgit was up to 4.1750/1790 against the greenback from 4.1800/1840 at yesterday’s close.

RHB bank in its economic view released today said the country’s exports rebounded into positive territory by expanding at 1.1% in April after contracting 0.5% and 5.3% in the two prior consecutive months.

“Electrical and electronics exports recovered into a growth of 3.9% year-on-year after falling 1.9% in March 2019,” it said.

Another dealer said the trade data released yesterday coupled with a positive note from the Nikkei Purchasing Managers’ Index (PMI) had given the local unit a push, as it showed the Malaysian economy is expanding at a resilient pace despite global uncertainty.

“With oil price sliding on the back of growing economic fears, it is important that other economic sectors perform to maintain the value of the ringgit,” he said.

At 9 am, the benchmark Brent crude was recorded at US$61.99 per barrel, compared with US$71.18 per barrel two weeks ago.

The market will be closed for two days on June 5-6 in conjunction with Hari Raya Aidilfitri.

However, the ringgit traded mostly lower against a basket of major currencies.

It went down against the Singapore dollar to 3.0539/0580 from yesterday’s 3.0489/0522, depreciated against the yen to 3.8682/8730 from 3.8575/8623 and weakened versus the pound to 5.2881/2935 from 5.2839/2907.

Vis-a-vis the euro, the local unit slid to 4.6969/7018 against 4.6703/6752 yesterday.