KUALA LUMPUR: The ringgit continued its upward momentum to touch an intra-day high of 4.0470 against the US dollar, a level last seen on Aug 29, 2016.
However, the currency closed off-best at 4.0650/0680 as profit taking trimmed earlier gains.
Yesterday the local note closed at a 14th month high of 4.0600 .
“It has appreciated almost 10 per cent since the beginning of this year,” said a dealer, adding that the fundamentals were still intact.
“The currency is continuing to strengthen,” said a trader.
Meanwhile, Oanda Corp Head of Trading for Asia Pacific Stephen Innes said speculators got into the act which drove the ringgit up by 180 basis points at the height of trading,”he told Bernama.
He described today’s trading as “a fantastic 24 hours for the ringgit’’ as yesterday’s Purchasing Managers’ Index, which hit a 43-month high, was supportive of the local currency.
“Bank Negara Malaysia has sounded overtly hawkish of late and appears more open to a stronger currency to ward off potential inflation,” Innes said.
However, he cautioned that foreigners, who were noted buyers on the local equity market, would add to the frothy ringgit condition. – Bernama