The ringgit closed marginally higher against the US dollar today as improved sentiment following Britain's vote to exit the European Union (Brexit) lifted demand for the local note.

At 5pm, the ringgit was higher at 3.9940/9000 against the greenback from Friday's closing of 3.9960/9010.

FXTM vice-president of corporate development and market research, Jammel Ahmad said the panic sell-off of pound sterling had caused emerging market currencies, including the ringgit and rupiah, to suffer short-term volatility before stabilising.

However, he said Prime Minister Najib Abdul Razak's timely statement, saying he did not expect Brexit to have a significant impact on the Malaysian economy and that fiscal reforms would continue further, somewhat
calmed the volatility.

"It is still very difficult to pinpoint which direction the local currency is heading next," he said in a note today.

Ahmad also said the US Federal Reserve's (Fed) decision on interest rate should continue be monitored.

He said if the Fed did postpone any possibility of future rate rises, then it might pull investors back towards the emerging markets, where there are benefits of higher interest rates.

Meanwhile, the ringgit was also traded higher against other major currencies.

It rose against the Singapore dollar to 2.9678/9742 from 2.9710/9769 on Friday and appreciated against the yen to 3.8894/8967 from 3.8955/8034 previously.

The local unit was higher against the British pound at 5.2917/2004 from 5.3147/3241 on Friday and strengthen against the euro to 4.4361/4444 from 4.4376/4455 previously.

- Bernama