Ringgit Positive on Improved Market Sentiment

thecekodok


The ringgit strengthened against the US dollar in early trade on Thursday on improved buying sentiment towards the domestic currency.


At 10.25am, the ringgit was at 4.4280, up 0.49% against the USD from its close of 4.4505 at the end of Wednesday.


Bank Muamalat Malaysia Bhd Chief Economist Dr Afzanizam Rashid said the US Fed was likely to remain on track to cut interest rates by 25 basis points at the upcoming Federal Open Market Committee (FOMC) meeting.


He added that the current trend is yet to be seen to help boost the value of emerging market currencies including the ringgit.


In addition, the uncertainty in the political situation in France and South Korea may have led to cautious sentiment attracting more demand for the US dollar.


Trump's policy on tariffs and whether it will accelerate the ongoing war on trade especially with major economies next year and beyond.


The ringgit was traded higher against a basket of major currencies.


It rose against the British pound to 5.6370/5.6561 from 5.6415/5.6472 on Wednesday, rose against the euro to 4.6660/4.6818 from 4.6735/4.6782 yesterday and rose against the Japanese yen to 2.9600/2.9600 2.9546/2.9580 previously.


The local note also outperformed its Asean counterparts.


It rose against the Singapore dollar to 3.3031/3.3147 from Wednesday's close of 3.3057/3.3093 and strengthened against the Philippine peso to 7.62/7.65 from 7.64/7.65.


The local unit also rose against the Thai baht to 12.9510/13.0088 from 12.9563/12.9751 yesterday and rose against the Indonesian rupiah to 278.5/279.6 from 279.2/279.6 previously.

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