Ringgit continues rally to reach 5-year high against US dollar, strengthens against Singapore dollar

The ringgit extended its rally on Boxing Day (Dec 26) to reach a five-year high against the US dollar. 

At 8am, the ringgit surged to 4.041 against the US dollar, up from 4.0425 at Wednesday's close. The ringgit had hit 4.045 on Feb 26, 2021. 

The ringgit also rose against the Singapore dollar to 3.149 at 12.20pm on Dec 26, while appreciating against the Japanese yen, Thai baht and Philippine peso. 

Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid noted in an interview with Bernama that investors have remained constructive on the ringgit. 

He said: "Typically, there could be profit-taking activities, especially when the market has priced in all the positive news.

"Hence we expect ringgit to continue trading in a narrow range of RM4.04 to RM4.05 today." 

In a briefing on Nov 14 regarding Malaysia's third quarter economic and financial developments, central bank governor Abdul Rasheed Ghaffour said that the country's positive economic prospects, together with the government's commitment on structure reforms and fiscal sustainability have become "more visible". 

"This will continue to provide medium-term support to the ringgit. Central Bank Malaysia will continue to ensure the orderly functioning of the domestic foreign exchange market and two-way flow through the coordinate efforts with the government and corporates," he added.

[[nid:727267]]

editor@asiaone.com