KUALA LUMPUR – The ringgit ended the week marginally higher, trading in a very narrow range as FTSE Russell's decision to keep Malaysian bonds on the watch list was already anticipated, said an analyst.
As at 6pm, the local note was quoted at 4.1650/1700 compared with Thursday's close of 4.1660/1710.
AxiCorp chief global market strategist Stephen Innes said it was believed there was some profit-taking activity ahead of the FTSE Russell decision and once the risk of removal was cleared, some of those investors bought the ringgit again.
“However, flows were tepid as election risks both at home and abroad, with the US presidential debate next week, loom large,” he told Bernama.
Innes added that if US President Donald Trump narrowed Democratic presidential nominee Joe Biden's lead in the polls, it would raise election risk and strengthen the US dollar.
“But I don't think this will damage the ringgit that much as bond yields remain very supportive and the local stock market has held up relatively well through all the global turmoil,” he added.
Innes also noted that a favourable bounce in crude oil price had also caught many investors by surprise, which had likely helped the ringgit sentiment.
At 6.25pm today, Brent crude oil rose 0.19% to US$42.02 per barrel.
Against other major currencies, the ringgit was traded mixed.
It depreciated against the Singapore dollar to 3.0264/0307 from 3.0252/0299 yesterday but was higher against the British pound to 5.3008/3088 from 5.3075/3155.
The local currency was slightly lower against the euro at 4.8489/8564 from 4.8488/8563 previously but rose versus the yen to 3.9490/9549 from 3.9522/9584. – Bernama, September 25, 2020
.jpg)
