Ringgit Opens Higher Against US Dollar

KUALA LUMPUR, Dec 5 (Bernama) -- The ringgit opened higher against the US dollar Monday on better demand following Bank Negara Malaysia's (BNM) new measures, effective Monday, to encourage more domestic trade of the ringgit. At 9.05 am, the local unit strengthened to 4.4470/4500 against the greenback from the 4.4500/4550 recorded last Friday. In a statement last Friday, the central bank said exporters could only retain up to 25 per cent of export proceeds in foreign currency, while higher balances would need its approval. BNM said foreign currency arising from conversion of export proceeds would be used to ensure continuous liquidity of foreign currency in the onshore market. "All ringgit proceeds from exporters can earn a higher deposit rate of 3.25 per cent per annum," it added. Meanwhile, the ringgit traded mostly higher against other major currencies. It rose against the Singapore dollar to 3.1205/1235 from 3.1274/1327 last week and improved against the yen to 3.9064/9093 from 3.9128/9179. Against the euro, it was higher at 4.6943/6979 from 4.7375/7432, but declined against the British pound at 5.6410/6462 from 5.6057/6137 last Friday. -- BERNAMA