The ringgit maintained its bullish trend versus the US dollar to close at 3.897 today, hitting its highest level in seven months, on continued support from investors.

The local note settled at 3.8970/8070 versus the greenback from 3.9385/9455 yesterday.

A dealer said the local note rallied to this new level driven by positive global sentiment.

“Global sentiment received an unexpected uplift during this trading week following US Federal Reserve (Fed) chair Janet Yellen’s heavily dovish comments which rapidly extinguished the inflated expectations over US rate rise in April.

“Her cautious tone towards the Fed's implementation of future rate increases overshadowed the hawkish views of other Fed officials, while providing the clarity which investors had long sought,” FXTM Research Analyst Lukman Otunuga said in a statement.

He said the dollar received a crippling blow with its index slumping to a five-month low of 94.60.

Another dealer added that the news lifted Asian currencies including the ringgit, which became the region’s “best-performing currency” although it still remained the least attractive.

Against a basket of major currencies, the local note was traded higher.

It rose against the Singapore dollar to 2.8929/8022 from 2.9157/9215 yesterday and improved against the yen to 3.4689/4788 from 3.5087/5159 previously.

The local unit strengthened vis-a-vis the euro to 4.4254/4376 from 4.4580/4667 and appreciated against the British pound to 5.6047/6214 from 5.6667/9776 yesterday.

- Bernama