Malaysian Ringgit May Appreciate Amid COVID-19 Restrictions Easing

Foreign exchange experts believe the Malaysian ringgit’s value may appreciate further soon versus the US dollar. They believe this event can happen as COVID-19 restrictions and other related prohibitions loosened in the Southeast Asian country.

We want to share this forex-related news with our readers. We believe it can help them in their decision to exchange their Malaysian ringgit units with another foreign currency this week.

According to the report posted online by Malaysian news source Malay Mail, Malaysia’s official currency closed at RM4.1560 to US$1 last Friday, October 15. As of 9 AM today, Monday, October 18, it stood at the same level versus the greenback. 

The local note of Malaysia opened unchanged as this week begins amid silent trading ahead of the public holiday called Maulidur Rasul happening tomorrow. This national holiday is the celebration of Prophet Muhammad’s birthday.

Based on the information that MIDF Research supplied, the Malaysian ringgit’s appreciation last week was supported by COVID-19-related factors. One of them is the improving growth outlook in view of the interstate travel prohibition’s removal and other restrictions during the nationwide lockdown.

The research group added that Malaysia’s official currency also benefited from the further surge in oil prices. The Brent crude oil costs increased three percent last week to a three-year high of US$84.86 per barrel by Friday

In the previous week, this cost was US$82.39 per barrel, according to MIDF Research. Analysts also expect that the Malaysian ringgit may encounter some technical correction this week, trading in the range of RM4.15 to RM4.16 per US$1.

This event happened following the Malaysian local note trading higher for six consecutive trading sessions before slipping last Friday. Foreign exchange analysts said investors might want to cash in some gains. 

Meanwhile, the Malaysian ringgit rose against the Singapore dollar to RM3.0797. Friday’s close was RM3.0824 is to SG$1.

Malaysia’s official currency appreciated against the euro, with €1 is equal to RM4.8147, from RM4.8222 previously. However, the ringgit slipped vis-a-vis the Japanese yen to RM0.0364, from RM0.0363 on Friday. 

It also weakened versus the British pound to RM5.7108 from RM5.7049 at the end of last week. We are pleased to learn about the Malaysian ringgit rising in value against the US dollar and others in the basket of major currencies.

We agree that the easing of the coronavirus or COVID-19 restrictions Malaysia-wide is beneficial for the country’s local note. If this scenario is favorable to our readers, we suggest they exchange their units of the Malaysian ringgit today. Otherwise, we recommend they wait until the foreign exchange scene is favorable to them.

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