The ringgit continues to strengthen against the US dollar driven by a decline in the Dollar Index (DXY) as investors anticipate a potential interest rate cut by the Federal Reserve (Fed).
At 10.20am, the ringgit was at 4.3750 against the USD from where it closed at 4.3780 at the close of trading on Tuesday.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Afzanizam said the DXY index fell to 101.441 which is the lowest period in seven months followed by other major currency groups to remain strong.
He also said that the ringgit is expected to be well supported today due to the prospect of a drop in interest rates in the US which will result in a narrowing of the distance between the Fed funds rate and Malaysia's OPR.
Meanwhile, the ringgit traded lower against a group of major currencies.
It weakened against the Japanese yen to 3.0103/3.0164 from 2.9917/2.9967 at Tuesday's close, eased against the euro to 4.8686/4.8781 from 4.8491/4.8568 and depreciated against the British pound to 5.7026/5.7137 from 5.6927/5.7018 previously.
In addition, the ringgit showed a mixed performance against Asean currencies.
It rose slightly against the Indonesian rupiah to 283.4/284.1 from 283.5/284.2 yesterday and rose against the Philippine peso at 7.73/7.75 from 7.74/7.75 previously.
However, the ringgit fell against the Singapore dollar to 3.3536/3.3604 from 3.3466/3.3522 at Tuesday's close and eased against the Thai baht to 12.8085/12.8412 from 12.7982/12.8254 yesterday.
