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Ringgit opens higher on buying sentiment

by April 14, 2017 General

KUALA LUMPUR, April 14 — The ringgit opened higher against the US dollar today as investors continued to buy Asian currencies, a dealer said.     

At 9.02am, the local note was traded at 4.3960/4010 against the greenback from 4.4100/4150 at 6pm on Thursday.

The dealer said the greenback was on track for a losing week following geopolitical tensions.       

“The US dollar went down 0.6 per cent for this week and we see the trend to continue,” the dealer said, adding that measures announced by the Bank Negara Malaysia would also help lift the local currency.

Yesterday, in an effort to streamline the foreign exchange hedging framework, the central bank said institutional investors were now allowed to hedge their exposure and actively manage up to 100 per cent of their underlying assets from the current 25 per cent.

The eligible participants for this flexibility also has been expanded to include companies with eligible foreign currency or ringgit asset underlying.  

It also added three other major currencies — British pound, euro and yen — for the hedging transaction against the ringgit, joining the current US dollar and Chinese renminbi.

The ringgit today was traded higher against most major currencies, except the euro, which it declined to 4.6659/6717 from 4.6297/6998 at yesterday’s close.

The local note rose against the Singapore dollar to 3.1429/1469 from 3.1606/1646 on Thursday and strengthened against the yen to 4.0267/0324 from 4.0474/0538 previously.

The ringgit appreciated against the British pound to 5.4968/5039 from 5.5297/5377 yesterday. — Bernama