Ringgit ends slightly higher against US dollar

KUALA LUMPUR: The ringgit ended slightly higher against the US dollar today, as investors were upbeat that Asian emerging market currencies, including the local note, were set to benefit ahead of the summit between United States President Donald Trump and North Korean leader Kim Jong-Un in Singapore.
At 6pm, the ringgit was quoted at 3.9860/9900 against the greenback from last Friday's close of 3.9870/9900.
In a note today, FXTM Global Head of Currency Strategy and Market Research Jameel Ahmad said in general, regional currencies were classified as one of the riskier investment assets.
"They would likely benefit from the improved sentiment in the stock markets enticing investor attractions towards emerging market currencies," he added.
Jameel said the countries closest to North Korea geographically would also be the contenders to the rally.
"This includes the Korean won, Chinese yuan, Thai baht, Indonesian rupiah and Malaysian ringgit. The Singapore dollar could also benefit," he said.
Meanwhile, another dealer pointed out that investors had factored in the interest rate increase expectation by the US Federal Reserve (Fed) on Wednesday.
Hence, he said the impact from the Fed rate hike anticipation on the ringgit was expected to be less harmful.
At the close, the local unit was traded mixed against a basket of currencies.
It increased against the British pound to 5.3281/3342 from last Friday's 5.3482/3534 and rose against the Japanese yen to 3.6223/6263 versus 3.6468/6505 previously.
However, vis-a-vis the Singapore dollar, the ringgit declined to 2.9855/9897 from 2.9836/9881 last Friday and weakened against the euro to 4.6987/7054 from 4.6903/6946, previously. — Bernama