Ringgit rebounds on improved Brexit sentiment
KUALA LUMPUR, June 28 — The ringgit rebounded to close marginally higher against the US dollar, as sentiment towards the Brexit was improving slightly.
At 5pm, the ringgit was higher at 4.0725/0785 against the greenback from yesterday’s 4.0910/0010.
Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said traders believed the impact of Brexit may not be ugly as expected as the United Kingdom would take at least two years to sort out its exit from the European Union.
“We also see that the pound sterling is stronger and the safe-haven assets such as bonds and gold are experiencing a technical correction,” he told Bernama today.
On the home front, Nazri Khan said the Cabinet reshuffle yesterday could increase investor confidence as there were younger faces and experienced leaders in the rotation, which included Datuk Johari Abdul Ghani as the Second Finance Minister. Johari was previously the Deputy Finance Minister.
Against other major currencies, the ringgit was traded higher.
It rose against the Singapore dollar to 3.0044/0091 from 3.0156/0250 from yesterday and appreciated against the yen to 3.9872/0962 from 4.0104/0214 previously.
The local unit was firmer against the British pound at 5.4152/4244 from 5.4508/4675 yesterday and strengthened versus the euro to 4.5013/5088 from 4.5210/55328, previously. — Reuters