Kota Kinabalu (Dec 26) - The ringgit continued its upward trend today, opening stronger against the US dollar to reach its highest level in about five years during a shortened trading week due to the Christmas holiday.
At 8am, the local currency was quoted at 4.0410/0495 against the greenback, improving from 4.0425/0515 at Wednesday’s close. The ringgit was last seen at similar levels on Feb 26, 2021, when it traded at 4.0450/0443 versus the US dollar. Trading activity was lighter as markets were closed on Thursday in observance of Christmas Day.
The sustained strength of the ringgit reflects continued positive sentiment in the currency market, even as trading volumes remain subdued. Some market participants may take profits after the recent rally, particularly as the currency has already reflected much of the recent favourable developments.
For Sabahans, the stronger ringgit could help ease the cost of imported goods and supplies that are brought into the state from Peninsular Malaysia and overseas. This may translate into some relief in prices for essential items, transportation-related costs and business inputs, which are especially significant for Sabah’s import-reliant economy.