Ringgit to continue upward momentum amid cautious trade

CORONAVIRUS | The ringgit is expected to continue its upward momentum against the US dollar next week amid cautious trade, supported by positive global and domestic economic developments, dealers said.

A dealer said a series of stimulus measures announced by central banks around the globe this week was expected to prompt more international investors to shift towards emerging currencies, including the ringgit.

However, he said global investors would also be looking out for further signs of the economic carnage caused by Covid-19.

On Thursday, the US Senate overwhelmingly backed a US$2 trillion bill aimed at helping unemployed workers and industries affected by the Covid-19 epidemic, as well as providing billions of dollars to buy urgently needed medical equipment.

On the local front, Prime Minister Muhyiddin Yassin has unveiled an enhanced stimulus package worth RM250 billion with the objective of protecting the people’s well-being, supporting businesses and strengthening the economy to weather the effects of the Covid-19 pandemic.

The Prihatin Rakyat Economic Stimulus Package is expected to provide some optimism among the investors.

Meanwhile, RAM Ratings said the sweeping loan relief measures announced by Bank Negara Malaysia (BNM) earlier in the week would preserve the stability of the banking system amid disruptions caused by the Covid-19 pandemic.

For the week just ended, the ringgit ended higher against the US dollar at 4.3280/3350 from 4.3947/4012 on the Friday of the previous week.

On a Friday-to-Friday basis, the local currency performed mixed against a basket of currencies.

It was higher against the Singapore dollar at 3.0175/0234 from 3.0303/0369 a week earlier, and climbed to 3.9754/9829 from 3.9811/9898 versus the Japanese yen.

However, the local note inched down against the euro to 4.7608/7702 from 4.7204/7303, and slipped vis-a-vis the British pound to 5.2841/2943 from 5.1926/2042 previously.

- Bernama

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