This morning, the Malaysian Ringgit (RM) currency opened lower compared to yesterday's closing at 4.6229 due to the drop in global crude oil prices and lack of demand in the market even though the US dollar currency is in a weakening phase.
In addition, the market is now also in permanent risk due to the expected decrease in interest rates by the Federal Reserve (The Fed) in March next year.
At exactly 10 am, the ringgit experienced an increase and stabilized at around RM4.63 against the US dollar. It went against the tide of movement last week that showed strengthening sentiment.
According to SPI Asset Management Director, Stephen Innes said the expected interest rate cut will continue to increase the value of risky assets such as the US S&P 500 index is getting closer to its record high.
The increase fostered positive global sentiment and contributed to the US dollar's move to weaken in the world currency group.
At the regional level, the ringgit is on a positive path due to the benefits of policy stimulus measures by the Chinese government last October.
According to him, goods and semiconductors related to artificial intelligence (AI) are expected to continue to drive strong domestic exports next year. As a result, the ringgit will gain an advantage because export earnings through currency exchange play an important role in the credit of the local currency.
We can also see the ringgit opening lower compared to some of the world's major currencies. It fell against the British pound to 5.8913 and eased slightly against the euro to 5.1109.
However, the ringgit was also trading high against most other Asian currencies such as the Singapore dollar at 3.4986, the Indonesian rupiah at 299.0 and the Philippine peso at 8.35.
