The ringgit traded higher against the US dollar on Thursday on the back of yuan stabilization following the People's Bank of China's decision to keep interest rates unchanged earlier this week.
At 10.20am, the ringgit was at 4.4620, up 0.49% against the USD from 4.4845 at the close of trading on Tuesday.
SPI Asset Management managing partner Stephen Innes said China's plan to issue three trillion yuan in special treasury bonds next year to stimulate its economy continued to support the ringgit's performance.
However, he noted that while this development encouraged the main focus to remain on the trade policy of the incoming US administration, it could provide continued support to the US dollar as the inauguration draws near.
He added that the shift in trade dynamics and upcoming policy announcements would be the main factors influencing the ringgit's performance in the near term.
In addition, the Asian Dollar Index today also showed a generally uptrend indicating that the Asian currency basket is strengthening against the US dollar.
The ringgit recorded a mixed performance against major currencies.
It appreciated against the Japanese yen, trading at 2.8534/8579 from 2.8547/8586. However, it weakened against the British pound to 5.6237/6318 from 5.6209/6278 and depreciated against the euro to 4.6624/6692 from 4.6603/6660.
Against Asean currencies, the ringgit showed a mixed trend.
It weakened against the Singapore dollar at 3.2989/3041 from 3.2979/3024 and was unchanged against the Philippine peso at 7.66/7.68. Meanwhile, it remained almost unchanged against the Indonesian rupiah at 276.8/277.4 from 276.9/277.4 but rose against the Thai baht to 13.1066/1363 from 13.1283/1517.
