Ringgit hits strongest level of the year against US dollar

New Straits Times

2 days ago

KUALA LUMPUR: Ringgit climbed to its strongest level of the year against the US dollar, appreciating to 4.1930 per dollar on July 1, the first time it traded below the 4.20 level since the start of the year.
This marks a 6.38 per cent gain from the 4.4785 recorded on Jan 2, according to Bank Negara Malaysia exchange rates data.
The rally signals a notable turnaround for the ringgit, which had seen weaker levels earlier in the year. Its weakest point was 4.5010 on Jan 3.
At the time of writing, the ringgit has edged slightly weaker to 4.2095, leaving traders watching closely to see whether it can reclaim or sustain the 4.1 range in the coming sessions.
Beyond its headline gain against the greenback, the ringgit has notched impressive advances across a basket of regional and commodity-linked currencies.
Its strongest year-to-date performance came against the Hong Kong dollar, a currency pegged to the US dollar, rising 7.25 per cent.
Modest but steady gains were recorded against the Australian and Canadian dollars, with the ringgit appreciating by around 0.75 to 0.78 per cent, respectively.
However, it slipped 1.96 per cent against the New Zealand dollar, one of the few developed-market currencies to post a net gain over the ringgit so far this year.
The ringgit's climb was more pronounced within Southeast Asia. It strengthened by 6.5 per cent against the Indonesian rupiah, moving from 0.0277 to 0.0259 per 100 rupiah.
Solid advances were also seen versus the Vietnamese dong and Cambodian riel, with the ringgit gaining 9.09 per cent and 5.87 per cent respectively.
Against the Philippine peso, the ringgit appreciated 3.74 per cent, while it firmed up 6.36 per cent against the Myanmar kyat. It also edged higher versus the Thai baht, rising from 13.0721 to 12.9302 per 100 baht, a 1.09 per cent gain.
However, the ringgit showed limited movement against the Singapore dollar, weakening marginally from 3.2879 to 3.3007, a reflection of the closely tied trade and financial relationship between the two economies.
Its performance against European majors, however, was less favourable. The ringgit fell 6.65 per cent against the euro and 3.19 per cent against the British pound, in line with the broader global strength of both currencies.