Ringgit climbs to 5-month high against US dollar, set to touch 4.175

KUALA LUMPUR: The ringgit climbed to a near five-month high against the US dollar at the opening, spurred by global funds chase for yield.

At 9am, the ringgit stood at 4.2110/2160 against the greenback from 4.2180/2230 recorded at 6pm on Wednesday.

AxiCorp chief global market strategist Stephen Innes said from a real yield perspective, Malaysian government securities are a standout, likely powering the ringgit demand which is catching a tailwind from rising oil prices and the local unit’s stable beta to the Chinese renminbi.

He also said the local currency could test the critical 4.175 trend line in the not too distant future and possibly lower on a favourable outcome from the US-China trade talks.

Against a basket of currencies, the ringgit was traded higher.

It rose against the Singapore dollar to 3.0560/0601 from 3.0619/0646 recorded at yesterday’s close and went up versus the yen to 3.9631/9689 from 3.9661/9701.

Vis-a-vis the British pound, the local note appreciated to 5.4944/5018 from 5.5046/5106 and improved against the euro to 4.9690/9758 from 4.9709/9760 previously.