The value of the ringgit continues to rise against the US dollar

VALUE The ringgit continued to rise Wednesday morning, opening slightly higher against the US dollar driven by positive indications in China’s policy measures.

Analysts say this includes the country’s shift towards ‘living with Covid-19’ and new property measures to help its struggling housing sector.

At 9am, the local currency added value to 4.5345/5400 against the US dollar from Tuesday’s close of 4.5390/5465.

SPI Asset Management Managing Director Stephen Innes said the property measures taken would support a surge in commodity prices and since Malaysia is an exporter interested in exporting to China, this would help the ringgit through better terms of trade.

Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar continued to depreciate against the ringgit and this was seen as a natural correction after a significant increase over the past two years.

The United States (US) currency has fallen by 4.6 percent since November 4 — the biggest drop since January 2016 — following the release of the US Producer Price Index (CPI) data which was below expectations at eight percent compared to the forecast of 8.3 percent, he said. .

“The CPI measures the increase in the prices of goods and services that companies use to make their products, and a lower CPI indicates signs of deflation, which may lead the US Federal Reserve to ease the pace of interest rate hikes.

Meanwhile, the ringgit traded higher against a group of major currencies, except against the British pound.

The ringgit appreciated against the Japanese yen to 3.2512/2556 from 3.2573/2629 on Tuesday and strengthened against the euro to 4.6900/6957 from 4.7242/7320 yesterday.

The local currency also rose against the Singapore dollar to 3.3048/3093 from 3.3194/3252 at Tuesday’s close, but slipped against the British pound to 5.3747/3813 from 5.3678/3767 previously. – Named

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