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Ringgit rises against USD in early session

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Kuala Lumpur
– The ringgit was higher against the US dollar in early trading today on the back of an optimistic outlook of foreign fund inflows into the domestic debt market, supported by sound economic fundamentals.

At 9.13 am, the local unit stood at 3.9980/0020 against the greenback from 4.0020/0070 at the close yesterday.

In a note, Kenanga Research said the ringgit would remain on a strong footing and gradually appreciate against the US dollar and other major currencies, given the economy’s solid current account surplus, benign inflation outlook and prudent fiscal position.

“Nevertheless, we may also see a more volatile ringgit, mainly affected by the anticipated three rate hikes by the US Federal Reserve this year.

“Hence, we may see the USD-MYR pair trading in a wider range between 3.95 and 4.10 in the first quarter this year,” it added.

Meanwhile, the ringgit traded mixed against a basket of major currencies.

It was flat against the Singapore dollar at 2.9975/0018 from 2.9975/9024 at the close yesterday, but rose against the British pound to 5.4013/4075 from 5.4019/4090.

The ringgit declined against the yen to 3.5860/5899 from 3.5806/5857 and fell against the euro to 4.7804/7864 from 4.7776/7844. – Bernama