Kuala lumpur: The ringgit traded higher against the US dollar on Monday after Malaysia's December Industrial Production Index (IPI) came in above market expectations, signalling that the domestic economy remains on a firm footing. At 6 pm, the ringgit increased by 0.33 per cent to 3.9325/9375 against the greenback compared with last Friday's close of 3.9440/9525.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that emerging-market currencies were generally stronger against the US dollar. He attributed this trend to a risk-on mode in Asia following election results in Thailand and Japan, which encouraged traders to be more optimistic about Asian currencies. "Hence, expect the ringgit to remain well supported in the near term," he stated.

At the close, the ringgit showed gains against a basket of major currencies. It rose against the Japanese yen to 2.5104/5137 from 2.5111/5167 at Friday's close and appreciated vis- -vis the British pound to 5.3482/3550 from 5.3548/3663. However, it eased against the euro to 4.6647/6707 from 4.6508/6608 previously.

The local currency was also mostly lower against its ASEAN peers, except for a strengthening against the Philippine peso to 6.72/6.74 from 6.73/6.75 previously. Meanwhile, the ringgit edged down against the Singapore dollar to 3.0979/10.21 from 3.0965/1034, fell versus the Indonesian rupiah to 234.0/234.4 from 233.6/234.3, and declined against the Thai baht to 12.5876/6101 from 12.4609/4933.