By Zairina Zainudin
KUALA LUMPUR, Aug 23 (NNN-Bernama) — The Malaysian Ringgit rose against the US dollar in early trade Monday as improved market sentiment following the certainty in Malaysia’s political environment helped lift investors’ risk appetite.
At 9 am, the local note stood at 4.2300/2340 versus the greenback compared with last Friday’s close of 4.2380/2400.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the ringgit was expected to trade between RM4.23 and RM4.24 against the US dollar this week, with the market likely to be calmer after the country’s latest political development.
However, tailwinds are likely be limited ahead of the US Federal Reserve’s (Fed) Jackson Hole conference, which is scheduled for Aug 26-28, 2021.
“If the picture of an earlier-than-expected tapering of asset purchases by the Fed appears from the symposium, the US dollar might strengthen and exert downward pressure on the ringgit,” he told Bernama.
Ismail Sabri Yaakob took his oath of office as Malaysia’s 9th Prime Minister before the Malaysian King Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah in a ceremony on Saturday.
The appointment of the United Malays National Organisation (UMNO) vice-president was made following the resignation of Muhyiddin Yassin on Aug 16 after failing to command majority support of the parliamentary members.
Meanwhile, the local note opened mixed against a basket of major currencies.
The ringgit rose against the Japanese yen to 3.8497/8536 from 3.8654/8676 on Friday and strengthened versus the British pound to 5.7706/7760 from 5.7709/7736 previously.
However, the local currency depreciated vis-a-vis the Singapore dollar to 3.1073/1107 from 3.1070/1087 at Friday’s close and weakened against the euro to 4.9491/9538 compared with 4.9474/9498 previously.
— NNN-BERNAMA