Ringgit extend gains versus US dollar at opening

Ringgit extend gains versus US dollar at opening

KUALA LUMPUR: The ringgit has remained on an uptrend this morning, opening stronger versus the US dollar as Covid-19 vaccine optimism wins the sentiments’ race against the negative pandemic developments, said Axi chief global market strategist Stephen Innes.

At 9.00am, the local currency improved to 4.0260/0310 versus the greenback, from Wednesday’s close of 4.0350/0390.

Innes said the quick roll-out of the vaccine in the United Kingdom (UK) is giving hope that the issues on the logistical distribution of the vaccine throughout the rest of the world will be easily overcome, resulting in a sooner-than-expected economic boom.

“The ringgit is a huge beneficiary as the stars around oil, exports, and travel are aligned with the vaccine optimism, and this should clear the runway for the ringgit’s strong headstart for 2021.

“The year-end activities are expected to dominate today, so currency trading will turn more transactional rather than speculative,” he told Bernama.

The firmer ringgit performance was also supported by higher oil prices. As of the time of writing, benchmark Brent crude increased by 0.5 percent to US$51.34 per barrel.

Meanwhile, the ringgit was traded mostly easier against other major currencies.

It decreased against the Singapore dollar to 3.0447/0492 from 3.0441/0481 on Wednesday and was lower against the British pound to 5.4931/5011 from 5.4775/4846 previously.

However, the local note appreciated versus the euro to 4.9540/9618 from 4.9497/9559 yesterday and rose slightly against the Japanese yen to 3.9034/9087 from 3.9084/9126 previously. — Bernama