KUALA LUMPUR: The ringgit broke past the 3.0000 level against the US dollar at midday on Monday, April 25, surging to a fresh 13-year high of 2.995.
At 12.37pm, it was trading at 2.9950, up 0.0104 to the US dollar following the previous close of 3.0054.
The US dollar weakened against all major currencies and it was at 74.113 to a basket of major currencies. This is weakest from the recent high of 77.049 on March 1.
The Edge weekly reported the US dollar has been weakening after Standard & Poor's placed the country's AAA long-term credit outlook on a negative rating watch on April 18.
Year-to-date, the greenback is down about 6% against major currencies. Over the last decade, it has lost some 40% of its value.
Bernama reported a forex trader as saying there was a strong demand for the local currency from overseas banks as the ringgit is still undervalued and also on investors optimism over the stock market driven by the Economic Transformation Programme.
The trader had said the ringgit is still undervalued when all Asean currencies had recovered from the 1997 currency crisis, with some, even above the pre-crisis level.
"The trend for a stronger ringgit has been there for the past two weeks and it will invite more local and foreign investors into the local market," he was quoted saying.
Bernama reported the trader as saying he expects the ringgit to appreciate further to between the 2.80 to 2.85 level by year-end against the US dollar, depending on Bank Negara Malaysia's monetary policy.
Another reason for a stronger ringgit is the appreciating trend, in line with Asian currencies, on speculation central banks in the region will raise interest rates to cool inflation.
At 12.37pm, it was trading at 2.9950, up 0.0104 to the US dollar following the previous close of 3.0054.
The US dollar weakened against all major currencies and it was at 74.113 to a basket of major currencies. This is weakest from the recent high of 77.049 on March 1.
The Edge weekly reported the US dollar has been weakening after Standard & Poor's placed the country's AAA long-term credit outlook on a negative rating watch on April 18.
Year-to-date, the greenback is down about 6% against major currencies. Over the last decade, it has lost some 40% of its value.
Bernama reported a forex trader as saying there was a strong demand for the local currency from overseas banks as the ringgit is still undervalued and also on investors optimism over the stock market driven by the Economic Transformation Programme.
The trader had said the ringgit is still undervalued when all Asean currencies had recovered from the 1997 currency crisis, with some, even above the pre-crisis level.
"The trend for a stronger ringgit has been there for the past two weeks and it will invite more local and foreign investors into the local market," he was quoted saying.
Bernama reported the trader as saying he expects the ringgit to appreciate further to between the 2.80 to 2.85 level by year-end against the US dollar, depending on Bank Negara Malaysia's monetary policy.
Another reason for a stronger ringgit is the appreciating trend, in line with Asian currencies, on speculation central banks in the region will raise interest rates to cool inflation.
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