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KUALA LUMPUR – The ringgit further strengthened against the US dollar to close higher today as the greenback retreated amid concerns of a softer interest rate hike, an analyst said.
At 6pm, the ringgit rose to 4.2450/2465 against the greenback from yesterday’s closing of 4.2575/2625.
SPI Asset Management managing partner Stephen Innes said the ringgit continued its uptick, driven by declining sentiment towards the US dollar ahead of the Federal Reserve's decision next week.
He said the local currency was also buoyed by ongoing support from China’s reopening, which benefited the local economy.
“Similar to Thailand, perhaps not to the same extent just yet, Chinese travellers are providing a significant boost to the local economy; hence the demand for ringgit from an inbound tourist perspective remains strong,” said Innes.
At the close, the ringgit traded mostly higher against a basket of major currencies.
The local note appreciated against the Singapore dollar to 3.2345/2359 from 3.2352/2392 at yesterday’s close, climbed against the euro to 4.6254/6270 from 4.6322/6376, and gained against the Japanese yen to 3.2671/2685 from 3.2790/2831.
However, it declined vis-a-vis the British pound to 5.2583/2601 from 5.2418/2480 previously. – Bernama, January 26, 2023