The ringgit strengthened against the US dollar and major currencies, supported by expectations of a US interest rate cut at the upcoming FOMC meeting
KUALA LUMPUR: The ringgit opened firmer against the US dollar this morning, extending last week’s positive momentum as the greenback weakened ahead of a key Federal Reserve meeting.
At 8 am, the local currency traded at 4.1035/1245 versus the US dollar compared with 4.1105/1140 at last Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said traders are expecting a 25 basis point rate cut from the US central bank, which is focusing on promoting growth amid a weaker outlook.
“On that note, ringgit is expected to remain well supported, with the US dollar-ringgit is likely to range between RM4.11 and RM4.12,” he said.
The ringgit hit its highest level in over four years last Thursday, trading at 4.1115/1165 against the greenback.
It also strengthened against other major currencies at the opening.
The local unit climbed versus the British pound to 5.4671/4951 from 5.4859/4905 and strengthened against the euro to 4.7769/8013 from 4.7912/7953.
It edged up against the Japanese yen to 2.6426/6563 from 2.6536/6561.
The ringgit traded mostly higher against ASEAN currencies as well.
It gained against the Singapore dollar to 3.1663/1827 from 3.1741/1773 and was marginally higher against the Philippine peso at 6.96/7.00 from 6.97/6.98.
It was also higher vis-à -vis the Thai baht at 12.8403/9133 from 12.9054/9221, but was almost flat against the Indonesian rupiah at 246.4/247.8 from 246.8/247.2. – Bernama
