The Malaysian ringgit (RM) continued its rise against the US dollar by opening at a new 18-month high due to investors' confidence in the expectation that the Federal Reserve (Fed) will cut interest rates.
At 10.20 am, the ringgit was at a position of 4.3690 against the USD from where it closed at 4.3805 on Monday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the continued fall in the US dollar index (DXY) suggests a highly anticipated interest rate cut in the US as early as September this year.
This sentiment will continue to benefit the ringgit currency along with the developing local economic position.
He also said that events in the US this week will provide a clearer indication as Fed chairman Jerome Powell will provide more information on the potential rate cut in September.
Meanwhile, the ringgit traded mostly higher against a group of major currencies.
It rose against the Japanese yen to 2.9799/9905 from 2.9946/9979, appreciated against the British pound to 5.6771/6966 from 5.6784/6843 at yesterday's close, but fell against the euro to 4.8446/8612 from 4.8339/8388 yesterday.
The ringgit also traded mostly higher against Asean currencies.
The local currency rose against the Singapore dollar to 3.3412/3530 from 3.3424/3461 at Monday's close and was higher against the Philippine peso at 7.71/7.74 from 7.73/7.74 previously.
It also rose against the Indonesian rupiah to 280.9/282.1 compared to 281.6/282.1 at yesterday's close and weakened against the Thai baht to 12.7142/7664 from 12.7126/7308 previously.
