KUALA LUMPUR: The ringgit continued its uptrend against the US dollar at the close yesterday on better investor demand for the local currency, a dealer said.

At 6 pm, the ringgit was quoted at 4.1410/1440 versus the greenback from Monday’s close of 4.1421/1450.

The dealer said the better crude oil prices, with the benchmark Brent crude oil price at press time rising to US$62.68 per barrel yesterday, has helped elevate the demand for the ringgit as Malaysia is a net oil and gas exporter.

Meanwhile, Bank Negara Malaysia’s (BNM) move to extend the maximum tenor of repurchase agreements, or repos, to five years from 365 days previously, will enhance liquidity and accessibility in the financial markets, and avoid a downgrade by global index provider FTSE Russell. 

“This has supported the ringgit to remain positive,” the dealer said.

BNM today announced the initiative on its website, releasing a policy document that set out the revised requirements and expectations of the bank on market participants which enter into repo transactions involving ringgit and non-ringgit repo and reverse repo transactions.

Meanwhile, the local note traded mixed against other major currencies.

The ringgit rose against the Singapore dollar to 3.0415/0448  from 3.0425/0451 on Monday and went up against the yen to 3.7932/7966 from 3.8008/8045 on Monday.

It slipped against the British pound to 5.3158/3213 from 5.3023/3077 Monday and was almost flat versus the euro to 4.5679/5729 from 4.5679/5728 previously. – Bernama