KUALA LUMPUR, Jan 15 — The ringgit edged up against the US dollar today after US Federal Reserve (Fed) chair Jerome Powell sent a dovish message to the markets yesterday.
At the close, the local note stood at 4.0350/0380, inching up 20 basis points against the greenback from 4.0370/0420 at yesterday’s close.
The US dollar’s recent rallies were capped by Powell’s remarks yesterday that the US central bank had no interest to raise interest rates as long as the country’s inflation stayed low.
Axi chief global market strategist Stephen Innes opined that the stabilised crude oil prices supported the ringgit’s performance today.
“I believe G5 currencies’ traders remain cautious over the Fed’s policy and escalation of political risks in Europe.
“But in Asia, I think currency risk has room to grow, especially for the ringgit which will hold ground while waiting for the next leg of higher crude oil prices,” he told Bernama.
According to Innes, without the resurgence in Covid-19 cases in China, oil prices would climb higher and propel the ringgit stronger.
At the time of writing, the benchmark Brent crude price slipped 1.68 per cent from the previous session to US$55.47 (RM224) per barrel, managing to stay above the US$55 level.
Against other major currencies, the local note finished mostly higher except vis-a-vis the yen.
It strengthened against the Singapore dollar to 3.0386/041 from 3.0466/0513 at yesterday’s close and appreciated vis-a-vis the pound to 5.5029/5086 from 5.5105/5189 yesterday.
The ringgit firmed against the euro to 4.8977/9021 from 4.9106/9183 yesterday while against the yen, it retreated to 3.8918/8962 from 3.8821/8880 yesterday. — Bernama
