Ringgit extends rally for sixth straight session

ringgit dollar

KUALA LUMPUR: The ringgit rose for the sixth straight day as bullish oil prices and the latest development of Covid-19 vaccine rollout added to optimism over the currency’s prospects.

At 9.05 am, the local currency increased to 4.0300/0340 against the US dollar from Monday’s close of 4.0320/0370.

Axi chief global market strategist Stephen Innes said the ringgit continued to get a boost from the steady oil prices, vaccine optimism and a gradual easing of the movement control order, which seems to be on the cards sooner than later.

“This is very bullish for the ringgit and should see a gradual return of improving sentiment towards the ringgit as we move into the second quarter.

“The local note will face a keen foreign investors’ test as the government will auction RM2 billion 2040 Malaysian Government Securities (MGS) to settle on Feb 18, 2021, which will be a good gauge of foreign investor uptake for local debt amid current economic headwinds.

“I would expect it to go well, given the global investors’ insatiable chase for yield,” he told Bernama.

Overall, Innes said he believes the ringgit is returning to 4.0 level soon.

The World Health Organisation on Monday has authorised AstraZeneca and Oxford University’s Covid-19 vaccine for emergency use, giving the green light for these vaccines to be rolled out globally through COVAX.

The local currency was traded higher against other major currencies on Tuesday except the British pound.

It increased against the Singapore dollar to 3.0470/0512 from Monday’s close of 3.0481/0523 and strengthened vis-a-vis the euro to 4.8904/8969 from 4.8920/8979 previously. 

The ringgit also appreciated against the yen to 3.8203/8248 from 3.8258/8313 but weakened against the British pound to 5.6106/6165 from 5.6033/6144. – Bernama