KUALA LUMPUR, Sept 8 — The ringgit closed higher against the US dollar today on the surprising upside of the China’s August trade data and an increase in oil prices, dealers said.
At 6pm, the ringgit was quoted at 4.0420/0500 against the greenback from 4.0550/0610 yesterday.
The data showed that China’s import growth, which rebounded to 1.5 per cent year-on-year, was the first positive reading in well over a year.
“There are also signs that imports were helped by some production chain effect, possibly related to launch of new electronic products over the month.
“Given the lift from electronics is temporary, the growth rates over the next few months will likely be weaker. But the underlying trajectory of import growth, and the shape of domestic demand will ultimately depend on the pace of fiscal expansion.
“We expect fiscal policy to remain expansionary in second half of 2016, offsetting weakness elsewhere in the economy,” The Hongkong and Shanghai Banking Corporation Ltd (HSBC) in a statement.
Meanwhile, it was reported that the higher oil prices came after the US industry data showed a decrease in crude oil stocks.
Benchmark Brent crude oil gained 80 US cents a barrel at US$48.78 by 0820 Greenwich Mean Time (GMT), after settling up 72 US cents yesterday.
The ringgit was traded mostly higher against a basket of major currencies.
It rose against the Singapore dollar to 3.0012/0089 from 3.0106/0162 yesterday and increased against the yen to 3.9768/9866 from 3.9923/9986 yesterday.
The local note improved against the British pound to 5.3985/3100 from 5.4175/4271 yesterday. It eased against the euro to 4.5574/5668 from 4.5570/5646 previously. — Bernama
