Ringgit closes higher against US dollar

KUALA LUMPUR: The ringgit ended higher against the US dollar for the third consecutive day today on the back of pessimistic outlook on US policy execution.
At 6pm, the local unit was traded at 4.2300/2330 against the greenback from 4.2315/2325 on Tuesday.
FXTM Global Head of Currency Strategy and Market Research Jameel Ahmad said the local unit was reaping the benefits of undelivered policy promises by the US President Donald Trump such as tax reforms and protectionism.
"For as long as these are delayed, it will be positive for the ringgit and regional currencies," he said in a media briefing on the market outlook for 2018 today.
He said that the market was also keeping close attention on the next US Federal Reserve Chairperson who would succeed Janet Yellen, which is expected to be announced tomorrow.
"If Trump does nominate somebody who is much more cautious than Yellen, much more anxious and less enthusiastic of raising interest rates, the financial markets and all the currencies that are trading against the US dollar including the Malaysian ringgit will find opportunities to strengthen," he added.
The ringgit, however, was mixed against a basket of major currencies.
It was lower against the Singapore dollar at 3.1080/1116 from 3.1071/1096 yesterday but strengthened versus the yen at 3.7105/7135 from 3.7354/7373 on Tuesday.
The ringgit eased to 5.6229/6286 from 5.5856/5886 when compared with the British pound yesterday but rose marginally against the euro to 4.9203/9242 from 4.9225/9241 previously. — Bernama