The ringgit appreciated to 4.1870/2065 per US dollar, boosted by ASEAN Summit success and expected US Federal Reserve rate cut.
KUALA LUMPUR: The ringgit extended its gains on Wednesday by opening higher against the US dollar.
An analyst attributed this positive movement to the successful conclusion of the 47th ASEAN Summit and Related Summits held in Kuala Lumpur.
At 8 am, the local currency appreciated to 4.1870/2065 per US dollar from Tuesday’s close of 4.1935/1985.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ASEAN Summit reinforced regional stability and integration.
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He noted that this development helped reduce the market risk premium and contributed to the ringgit’s appreciation.
Meanwhile, he pointed out that the US dollar index eased 0.12% to 98.667 points.
Market participants widely expect the US Federal Reserve to deliver a 25-basis-point rate cut after the Federal Open Market Committee meeting.
He added that optimism over a potential trade deal between the United States and China also improved overall market sentiment.
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The US Treasury bond yields for the three-month and five-year notes fell to 3.73% and 3.63% respectively.
Dr Mohd Afzanizam said the ringgit is expected to remain on a firmer footing today.
He projected the dollar-ringgit exchange rate would likely trade between RM4.19 and RM4.20.
At the opening, the ringgit traded higher against most major currencies.
It rose against the British pound to 5.5591/5850 from 5.5845/5911 at Tuesday’s close.
The local currency climbed versus the euro to 4.8804/9031 from 4.8884/8942.
It also inched up against the Japanese yen to 2.7591/7722 from 2.7605/7640.
The ringgit strengthened against most ASEAN currencies as well.
It improved against the Singapore dollar to 3.2372/2525 from 3.2460/2502.
The local note appreciated vis-a-vis the Indonesian rupiah to 252.0/253.3 from 252.4/252.9.
It was marginally higher against the Philippine peso at 7.08/7.12 from 7.09/7.10.
However, the ringgit eased against the Thai baht to 12.9420/13.0111 from 12.9214/9424 previously. – Bernama
