KUALA LUMPUR — The ringgit extended last Friday’s gains, trading firmer against the US dollar and breaching the RM4.30 level at today’s opening, driven by persistent buying interest amid expectations of a US interest rate cut, analysts said.
At 8.05 am, the local currency appreciated further to 4.2930/3030 against the greenback, compared to Friday’s close of 4.2975/3050.
The market was closed on Monday, September 16, in observance of Prophet Muhammad’s birthday and the Malaysia Day public holiday.
Analysts noted that the US dollar remained under pressure due to weakening demand, amid expectations the US Federal Reserve might implement a significant interest rate cut during its Federal Open Market Committee (FOMC) meeting September 17-18.
Reports indicated that the Fed was widely expected to lower rates by at least 25 basis points, with some traders speculating a larger cut of 50 basis points could also be on the table.
“Tracking the Fed’s anticipated interest rate cut, along with steady oil prices, this could support further appreciation of the ringgit this week,” analysts said.
At the opening, the ringgit traded mostly lower against a basket of major currencies.
It depreciated against the euro to 4.7781/7892 from 4.7664/7747 at Friday’s close, weakened against the British pound to 5.6706/6838 from 5.6439/6538, but strengthened against the Japanese yen to 3.0510/0585 from 3.0570/0625.
The ringgit also traded mostly lower against ASEAN currencies.
It fell against the Singapore dollar to 3.3138/3218 from 3.3098/3159 last Friday, eased against the Philippine peso to 7.68/7.70 from 7.67/7.69, declined against the Thai baht to 12.9035/9417 from 12.8907/9190, but remained nearly flat against the Indonesian rupiah at 278.7/279.5 from 278.9/279.6. — September 17, 2024