The ringgit continues to strengthen following the support of increasingly positive global and local factors and it is expected to hover around RM4.30 to RM4.38 until next week.
At 10.40am, the ringgit eased slightly to 4.3770 against the US dollar from where it closed at 4.3720 on Wednesday trading yesterday.
Bank Muamalat Malaysia Bhd Chief Economist, Dr. Afzanizam Abdul Rashid said the DXY index declined to 101.441 which is the lowest level in seven months as the major currencies rose against the US dollar.
The two-year US Treasury yield, which is most sensitive to the US central bank's policy rate, fell seven basis points to 3.99%.
He also said that the ringgit is projected to be well supported today because the prospect of a reduction in US interest rates will narrow the difference between the Fed Funds Rate and the Overnight Policy Rate (OPR).
UniKL Business School Economic Analyst, Associate Prof Dr. Aimi Zulhazmi said the internal factor is when a lot of foreign investment flows into Malaysia to the stock market as well as the purchase of bonds and notes issued by the government.
Meanwhile, the ringgit is traded mostly low compared to the world's major currencies.
It eased against the Japanese yen to 3.0050 from a close of 2.9943, lost against the euro to 4.8648 from 4.8637 and was lower against the British pound to 5.7096 from 5.6993 at the close of trade yesterday.
In addition, the ringgit is traded mostly higher than its peers in the Asean region.
It maintained its strong pace against the Singapore dollar to 3.3406 from 3.3456, firm against the Indonesian rupiah to 281.3, up against the Thai baht to 12.7120 and comfortable against the Philippine peso to 7.72.
