KUALA LUMPUR – The ringgit opened higher against the US dollar today, boosted by Prime Minister Tan Sri Muhyiddin Yassin’s announcement of the RM15 billion Malaysian Economic and Rakyat’s Protection Assistance Package (Permai) yesterday, as well as higher crude oil prices.
At 9.13am, the ringgit rose to 4.0450/0490 versus the greenback, from 4.0500/0540 at yesterday’s close.
A dealer said that crude oil prices are expected to stabilise in line with the progress in the Covid-19 vaccine rollout.
“Investors’ sentiment will be positive, hence, a steadier local currency,” he said.
22 initiatives worth RM15 billion were announced by the prime minister under the Permai assistance package yesterday, in a bid to cushion the impact of Covid-19.
The package is anchored on three goals, namely, fighting the pandemic, preserving the people’s welfare, and supporting business continuity.
Meanwhile, traders will be paying close attention to Bank Negara Malaysia’s two-day Monetary Policy Committee meeting that starts today.
Analysts have projected that the central bank would make another interest rate cut in response to the potential economic impact from the reimplementation of the movement control order and the declaration of the nationwide state of emergency.
Despite its improved performance against the greenback, the local note had opened mostly lower against a basket of major currencies except the yen, where it rose to 3.8984/9027 from 3.9010/9056 at the close yesterday.
The ringgit weakened against the Singapore dollar to 3.0418/0467 from 3.0378/0417 yesterday, eased vis-a-vis the British pound to 5.4988/5046 from 5.4784/4855 previously and fell versus the euro to 4.8888/8940 from 4.8847/8903. – Bernama, January 19, 2021
