Ringgit up on strong demand

RINGGIT

THE ringgit closed higher against the US dollar yesterday on strong commercial demand for the local currency as investors took the cue from the uptrend on Bursa Malaysia, dealers said.

At 5pm, the ringgit was quoted at 3.4700/4730 to the US dollar compared with Wednesday's closing of 3.4770/4810.

One of the dealers said the local stock market had extended its uptrend with investors optimistic about the global economic recovery.

At the close, the ringgit was higher against the Singapore dollar at 2.4549/4605 compared with 2.4613/4665 Wednesday and it also appreciated against the Japanese yen at 3.8237/8283 from 3.8560/8613 previously.

The local currency rose against the British pound to 5.7321/7377 from 5.7336/7423 Wednesday as well as against the euro to 5.1130/1185 from 5.1143/1209 previously.

INTERBANK RATES

SHORT-term rates closed on a steady note yesterday as Bank Negara Malaysia mopped up excess liquidity in the money market, dealers said.

The liquidity surplus was reduced to RM19.9 billion in conventional operations but increased to RM5.1 billion in Islamic funds.

The central bank had earlier forecast a total liquidity surplus of RM24.9 billion in conventional operations and RM4.9 billion in Islamic funds.

To reduce the excess, Bank Negara issued four conventional tenders of RM2 billion each for 15 days and 22 days respectively, RM1 billion for 28 days and RM3 billion for 43 days.

It also conducted a repo tender of RM500 million for 42 days.

The central bank also called for two late tenders, involving RM19.9 billion of one-day money in conventional operations and an Al-Wadiah tender for RM5.1 billion of one-day money.

KLIBOR

THE Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contract closed lower yesterday with only one contract month traded.

A dealer said March 2010 declined three ticks to settle at 97.62 with 10 lots traded.

However, the five-year Malaysian Government Securities futures remaind untraded in the absence of market moving factors.

As at 11am fixing yesterday, the three-month underlying KLIBOR was pegged at 2.14 per cent. - Bernama