Ringgit hits 3-month high on positive trade talks

KUALA LUMPUR: The ringgit rose to its highest in three months against the US dollar from improving undertone on the US-China trade talks and positive global risk sentiment after the US Federal Reserve rate cut.

The ringgit was up 0.46% to 4.1560/1590 versus the greenback from 4.1640/1670 recorded at last Friday’s close – its highest since Aug 2.

Axi Trader Asia-Pacific market strategist Stephen Innes said the ringgit was also tracking the stronger Chinese yuan after US Commerce Secretary Wilbur Ross suggested that licenses allowing US companies to sell to Huawei “will be forthcoming very shortly”.

“The yuan to test below 7.03 level this week and possible head to 7 level in the near future which should set up a positive test of 4.15 level for the ringgit,” he told Bernama.

On the local front, he said Bank Negara could decide to hold its rate which is expected to be a boost for the ringgit.

The last Monetary Policy Committee meeting for this year would be held tomorrow with many economists believing the central bank might keep the interest rate unchanged.

Meanwhile, the local note also traded firmer against other major currencies.

It marginally improved against the Singapore dollar to 3.0617/0651 from Friday’s 3.0649/0683 and gained against the Japanese yen to 3.8396/8431 from 3.8538/8569.

The ringgit strengthened versus the British pound to 5.3750/3793 from 5.3915/3963  and rose vis-a-vis the euro to 4.6381/6431 from 4.6420/6470.