KUALA LUMPUR, Feb 16 — The ringgit ended higher against the US dollar for the second consecutive day, thanks to the easing geopolitical tension in Eastern Europe which helped to cushion the risk assets and emerging market currencies against further losses, as well as stabilise crude oil at around US$94 per barrel.
At 6pm, the local note stood at 4.1835/1855 against the US dollar from 4.1850/1870 on Tuesday.
Sentiment in the equity market had also improved as the FBM KLCI index rose above the 1,600 threshold due to continuous buying support in selected heavyweights.
“Certainly, the easing tension has helped to support risk assets and emerging market currencies.
“However, questions on the durability of such tranquillity remain, especially when the United States (US) President Joe Biden’s administration continues to express its cautious stance towards Russia,” Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama.
He also noted that the US economic data suggests that the US Federal Reserve is on track for a rate hike in March, possibly leading to a 50-basis point increase within a single meeting next month.
Mohd Afzanizam said the case for a stronger US dollar in the immediate term remains visible and that the ringgit could stay at the present level.
Meanwhile, the ringgit was traded mostly lower against major currencies, except against the yen where it rose to 3.6174/6191 from 3.6193/6213 yesterday.
Against the Singapore dollar, the local note declined to 3.1123/1140 from 3.1097/1114 at the close on Tuesday, slipped to 5.6745/6772 vis-a-vis the British pound from 5.6715/6742 yesterday, and fell to 4.7596/7618 versus the euro from 4.7487/7510 previously.
— Bernama
