KUALA LUMPUR, Dec 28 — The ringgit extended its uptrend to close higher against the US dollar today on positive sentiment anticipating a United States (US) rate cut next year, an analyst said.
At 6pm, the ringgit rose to 4.6055/6125 against the greenback from Wednesday’s close of 4.6275/6330.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the strong rally in the US bond markets, which saw a sharper decline in the US Treasury yields, suggests the anticipation of a rate cut in the US is gaining momentum.
“This has led to the weaker US Dollar Index (DXY), which has fallen to around 100 points.
“Consequently, the ringgit appreciated against the US dollar to RM4.6082. This indicates that the ringgit versus greenback is moving closer to its immediate support of RM4.5778,” he told Bernama.
Meanwhile, the ringgit was traded lower against a basket of major currencies.
It depreciated against the Japanese yen to 3.2723/2776 from 3.2453/2494 on Wednesday, fell against the euro to 5.1242/1323 from 5.1152/1213, and declined vis-à-vis the British pound to 5.8932/9022 from 5.8862/8932 at yesterday’s close.
The ringgit was traded higher against Asean currencies amid depreciating against the Thai baht to 13.4979/5260 from 13.4559/4790 yesterday.
It appreciated vis-à-vis the Singapore dollar to 3.4972/5031 from 3.5001/5045, improved against the Philippine peso to 8.30/8.31 from 8.31/8.33 and edged up against the Indonesian rupiah to 298.6/299.3 from 299.8/300.4 previously.
— Bernama
