Ringgit Extends Gains To Close Higher Amid Japan Political Uncertainty

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, July 21 (Bernama) -- The ringgit extended its gains against the US dollar at Monday’s close, as the greenback struggled to appreciate amid political uncertainties in Japan, said an analyst.

At 6 pm, the ringgit rose to 4.2320/2365 against the greenback, compared to Friday’s close of 4.2410/2455.

SPI Asset Management managing partner Stephen Innes said the ringgit trended higher, supported by the election setback for Japan’s Prime Minister Shigeru Ishiba’s coalition, which did not trigger broader market volatility.

“The absence of contagion allowed Asian and other emerging market currencies, including the ringgit, to edge higher and strengthen modestly,” he told Bernama.

Echoing Innes, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded firmer in tandem with a 0.13 per cent decline in the US Dollar Index to 98.268 points, as major currencies such as the euro, yen, and the British pound all appreciated against the greenback.

“Despite uncertainties surrounding Japanese politics, the US dollar is struggling to appreciate, yet this has not resulted in a weak Japanese yen,” he said.

On that note, Mohd Afzanizam said the ringgit was generally firmer against the US dollar, with the pair hovering around RM4.2375 in the afternoon, compared to RM4.2493 during the morning session.

At the close, the ringgit was traded mostly higher against a basket of major currencies.

It strengthened against the British pound to 5.6954/7015 from 5.6999/7060 and advanced versus the euro to 4.9277/9330 from 4.9336/9388 at Friday’s close. 

However, it fell against the Japanese yen to 2.8612/8644 from 2.8517/8549.

Meanwhile, the local note rose vis-à-vis the Singapore dollar to 3.2990/3028 from 3.3027/3065, and gained against the Thai baht to 13.0754/0954 from 13.3027/3065.

Additionally, the ringgit appreciated against the Indonesian rupiah to 259.2/259.6 from 260.2/260.6 and edged up versus the Philippine peso to 7.40/7.41 from 7.41/7.43 previously.

-- BERNAMA