Ringgit trades higher against dollar

 

RINGGIT

THE ringgit was firmer against the US dollar yesterday in line with gains on the Malaysian stock market where sentiment was boosted by the government’s RM7 billion stimulus package, dealers said.

At 9 am, the ringgit was firmer at 3.5250/5300 from Tuesday’s closing of 3.5310/5350.

However, they said the gains on the local unit might be limited as some players were likely to stay on the sidelines awaiting the outcome of the US presidential election.

The ringgit was traded mostly lower against other major currencies in early trading today.

It was easier against the Singapore dollar at 2.3910/3966 from 2.3908/3948 on Tuesday while strengthened against the Japanese yen at 3.5431/5499 from 3.5638/5689 previously.

Against the euro, the ringgit was lower at 4.5571/5650 from 4.4777/4841 on Tuesday and weakened against the British pound at 5.6055/6166 from 5.5744/5818 previously.

INTERBANK RATES

SHORT-term rates closed steady yesterday as Bank Negara Malaysia intervened in the money market to absorb surplus funds, dealers said.

The central bank had earlier forecast a total liquidity surplus of RM16.57 billion in the conventional market and RM18.45 billion in the Islamic system.

It conducted six tenders, four in the conventional system, one in the Islamic operation and a repo tender.

Bank Negara also conducted a late conventional tender for RM10 billion of one-day money and an Al-Wadiah tender of RM17 billion for one day.

The exercise reduced the total liquidity surplus to RM10 billion in the conventional system and RM17.0 billion in Islamic funds.

KLIBOR

THE three-month Kuala Lumpur Interbank Offered Rates (KLIBOR) futures contracts on Bursa Malaysia Derivatives closed higher yesterday with activities dominated by strip trades, dealers said.

A total of 20 contract months were traded, comprising 18 strip trades of 60 lots each and two outright trades.

Among the contracts, December 2008 rose one tick to 96.56, January 2009 gained four ticks to 96.61, and March 2010 and September 2012 added seven ticks to 96.49 and 95.85 respectively.

Turnover increased to 1,220 lots from 320 lots on Tuesday and open interest rose to 48,862 contracts from 48,842 contracts previously.

Meanwhile, the underlying three-month KLIBOR remained at 3.66 per cent.

As for the five-year Malaysian Government Securities, no trading was recorded throughout the day. — Bernama