Ringgit broadly higher after Parliament passed Budget 2021

Ringgit broadly higher after Parliament passed Budget 2021
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KUALA LUMPUR (Nov 26): The ringgit ended broadly higher against a set of major currencies as investors reacted positively to Budget 2021 that was passed by Parliament today.

At 6pm, the local currency settled at 4.0650/0700 versus the greenback, the highest in almost 11 months, compared with Wednesday’s close of 4.0835/0890.

The budget, the first tabled by the government led by Prime Minister Tan Sri Muhyiddin Yassin, was passed at the policy stage with a majority voice vote.

It proposed RM236.5 billion for operational expenditure, RM69 billion for development expenditure, RM17 billion for the Covid-19 fund and RM2 billion in contingency savings.

A dealer said the approval helped boost investors’ confidence over the country’s economy, in view of the certainty in outlook, as well as harmony in the local political environment despite minor differences between the Perikatan Nasional government and opposition parties.

“Unlike other countries, which usually have a significant agenda disparity, this is a good indicator for us.

“We are quite dependent on foreign investments; hence it is important to have their (foreign investors) confidence in the current government and certainty about its stability,” he told Bernama.

Against other currencies, the ringgit rose against the Singapore dollar to 3.0365/0405 from 3.0408/0454 on Wednesday and strengthened versus the Japanese yen to 3.8982/9041 from 3.9125/9185 yesterday.

The local currency appreciated vis-a-vis the the British pound to 5.4308/4391 from 5.4478/4568 yesterday, and soared against the euro to 4.8382/8457 from 4.8606/8684 previously.