The ringgit began trading higher against the US dollar on Thursday, buoyed by stabilisation of the yuan following the People's Bank of China's decision to maintain interest rates earlier this week, which was seen as a positive indicator. At 8 am, the ringgit traded at 4.4835/4900 against the greenback, slightly up from Tuesday's close of 4.4845/4900.
SPI Asset Management managing partner Stephen Innes remarked that China's plan to issue three trillion yuan in special treasury bonds next year to stimulate its economy further supports the ringgit's performance. However, he noted that while these developments are encouraging, the primary focus remains on the incoming US administration's trade policy, which could lend continued support to the US dollar as the inauguration nears.
"The shifting trade dynamics and upcoming policy announcements will be key factors influencing the ringgit's performance in the near future," he told Bernama.
UOB Kay Hian Wealth Advisors investment research head Mohd Sedek Jantan highlighted that the local currency also gained strength due to stronger US economic growth data and expectations that robust global economic activity will boost oil demand. He added that Brent and WTI oil prices ended higher on Tuesday, further supporting the ringgit.
"Additionally, the Asian Dollar Index today also shows an uptrend, generally indicating that the value basket of Asian currencies is strengthening against a US dollar," he observed.
Despite these gains, the ringgit recorded mixed performance against major currencies. It appreciated against the Japanese yen, trading at 2.8534/8579 from 2.8547/8586. However, it weakened against the British pound to 5.6237/6318 from 5.6209/6278 and slipped vis-a-vis the euro to 4.6624/6692 from 4.6603/6660.
Against ASEAN currencies, the ringgit showed a mixed trend. It weakened against the Singapore dollar at 3.2989/3041 from 3.2979/3024 and was flat against the Philippine peso at 7.66/7.68. Meanwhile, it remained almost unchanged versus the Indonesian rupiah at 276.8/277.4 from 276.9/277.4 but appreciated vis-a-vis the Thai baht to 13.1066/1363 from 13.1283/1517.
