The ringgit strengthened against the US dollar in Thursday's trade, supported by a drop in global interest rates that dampened sentiment against the world's currency giant.
At exactly 10.30am, the ringgit was firm at 4.6850, which is up 0.28% against the USD from its closing of 4.6985 yesterday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the US Dollar Index (DXY) fell when Federal Reserve (Fed) President Jerome Powell signaled that a rate cut would happen without having to wait for inflation to drop to the 2% target.
In the local market, he said investors will closely monitor Bank Negara Malaysia's (BNM) Monetary Policy Committee meeting on Thursday and expect the OPR to remain at 3.0%.
The prospect of a lower interest rate differential between FFR and OPR will be a driver for the ringgit to strengthen in the near term.
Meanwhile, the ringgit is also trading mostly higher against a group of major currencies.
The local note appreciated against the Japanese yen to 2.9024/9069 from Wednesday's close of 2.9075/9092 and rose against the euro to 5.0816/0892 from 5.0828/0855 yesterday and fell to 6.0285/0375 against the British 6.0174/0206 earlier.
Likewise, the ringgit traded mostly higher than its Asean peers.
It rose against the Singapore dollar to 3.4779/4834 from 3.4817/4838 yesterday and strengthened against the Indonesian rupiah to 288.7/289.3 from 289.2/289.6 previously.
However, the local unit eased to 12.9233/9465 against the Thai baht from 12.9062/9184 on Wednesday and remained unchanged against the Philippine peso at 8.05/8.07.
