KUALA LUMPUR, Sept 30 ― The ringgit is holding on to yesterday’s gains as demand for the local unit continued to push towards uptrend amid a defensive US dollar.
At 9.06am, the local currency was traded at 4.1540/1590 versus the greenback compared with 4.1540/1590 yesterday.
AxiCorp chief global market strategist Stephen Innes said the local unit saw an uptick in long positions as trader quickly put the World Government Bond Index (WGBI) watch list and political concerns on the back burner as ringgit interest followed the US dollar, which traded weaker overnight.
“Malaysian Government Securities (MGS) in real returns continue to look attractive.
“And with the currency still playing catch-up to regional peers, it attracted some favourable attention,” he told Bernama.
However, Innes said the fall in oil prices could cloud today’s view as could the post-debate polling results, as a strong showing for the incumbent (President Donald Trump) could trigger a more robust US dollar response.
The oil prices remain under pressure amid a build in gasoline inventories.
The American Petroleum Institute (API) yesterday reported a climb in gasoline inventories of 1.62 million barrels for the week ended Sept 25, while crude oil inventories saw a draw of 831,000 barrels.
The ringgit was also traded mixed against other major currencies.
It appreciated against the yen to 3.9272/9340 from 3.9333/9388 at yesterday’s close and was stronger versus the British pound to 5.3379/3464 from 5.3420/3501.
The local currency was lower against the Singapore dollar to 3.0349/0395 from yesterday’s close of 3.0323/0367 and against the euro at 4.8760/8847 from 4.8569/8640. ― Bernama