KUALA LUMPUR: The ringgit continued its uptrend to end at a ten-month high of 4.2080/2110 against the US dollar, versus yesterday’s 4.2370/2400 amid encouraging and conducive domestic economic data.
Since the foreign exchange market resumed trading on Tuesday after the long holidays, the local unit has appreciated by 290 basis points.
Bank Negara Malaysia (BNM) has also maintained the Overnight Policy Rate at 3.00 per cent since July 13, 2016 at its Monetary Policy Committee meeting.
In a statement, the central bank said the domestic financial markets have been resilient and that the ringgit has strengthened to reflect economic fundamentals.
Malaysia’s international reserves also climbed to US$100.5 billion (RM431.7 billion) as at Aug 30, compared with US$100.4 billion (RM431.0 billion) registered as of Aug 15.
OANDA Asia-Pacific Trading Head Stephen Innes said the bulls are charging forward in a big way for the ringgit.
“It has turned from a stable to a strong currency. Soaring trade export figures are certainly not a sign of a struggling economy while firming oil prices bode well for the ringgit,” he said.
The ringgit ended higher against other major currencies.