Ringgit closes higher against US dollar

KUALA LUMPUR: The ringgit closed higher against the US dollar on better demand for the local note as the market expects the US Federal Reserve to leave interest rates unchanged for the time being.
At 6pm, the local note was quoted at 4.3260/3300 against the greenback from 4.3390/3430 registered at 6pm on Friday.
A dealer said the US Federal Reserve was expected to hold interest rates steady at its meeting this week as it pauses to analyse more economic data.
Meanwhile, ForexTime Ltd Vice-President of Corporate Development and Market Research Jameel Ahmad said there was a gradual decline in US economic data of late, which signalled US interest rates may not increase in the near future.
"Although the ringgit had rebounded compared to where it was at the beginning of the year, it is still undervalued when considering that the economy is expanding at around four per cent,” he said in a note today.
At the close, the local note was traded higher against most major currencies.
It rose against the Singapore dollar to 3.1015/1055 from 3.1088/1121 and was higher against the Japanese yen at 3.8539/8585 from 3.8911/8958 last week.
The ringgit improved against the British pound to 5.5827/5896 from 5.6129/6198 and advanced against the euro to 4.7227/7279 from 4.7456/7508 last Friday. — Bernama