Malaysian ringgit continues strong trend against Singapore and US dollar

The Malaysian ringgit remained on an uptrend against the US dollar, on sustained buying interest for the local currency.
The Malaysian ringgit remained on an uptrend against the US dollar, on sustained buying interest for the local currency. PHOTO: REUTERS

KUALA LUMPUR - The Malaysian ringgit remained on an uptrend against the US dollar on Monday morning (Jan 15), on sustained buying interest for the local currency, Bernama reported.

The ringgit is slightly lower against the Singapore dollar at 2.9917/9951, compared to Friday's level of 2.9895/9924. The ringgit traded at RM3 and lower per S$1 for most of last year.  

The Malaysian currency at 9.06am on Monday stood at 3.9580/9610 against the US dollar, compared to 3.9700/9730 at last Friday's Malaysian close, Bernama said.

Oanda Corp head of trading for Asia Pacific, Stephen Innes, said the ringgit has continued to shine due to higher oil prices, an emerging weaker US dollar trend, surging US equities and a stable Malaysia economic landscape. There is also an expectation that the Malaysian central bank will hike interest rates.

Malaysia is a net oil exporter, with a rise in global oil prices being a boon for government revenues.

Bloomberg wrote earlier this month that Malaysia has benefited from a global trade recovery and a pickup in domestic spending, with economic growth probably reaching 5.8 per cent last year.

It said Malaysia's central bank may be the first in South-east Asia to raise borrowing costs this year.

Bank Negara Malaysia signaled in November it may be preparing to adjust policy given the strength of the economy.