KUALA LUMPUR: Ringgit Vs USD – The ringgit gained to open higher against the US dollar in early trade on Wednesday, as the dollar weakened amid growing expectations of a global interest rate cut this year, an economist said.
The ringgit increased to 4.7080/4.7130 against the dollar at 9 am from Tuesday’s close of 4.7110/4.7155.
Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, said the ringgit was likely to gain strength as lower US interest rates will cut rate differentials between the Federal Fund Rate and the overnight policy rate.
Federal Reserve Governor Adriana Kugler reportedly said in her speech on Tuesday that it would be appropriate for the central bank to cut its interest rate later this year as economic conditions are moving in the right path.
In this regard, Afzanizam said that the local currency has seen an upward trend compared to other regional currencies.
“Perhaps, the policy reform such as the diesel subsidy rationalisation may have contributed positively to the ringgit’s strength,” he noted.
Meanwhile, the ringgit traded lower against a basket of major currencies in early trade.
The local currency fell to 2.9818/2.9852 against the Japanese yen from 2.9798/2.9828 on Tuesday, weakened against the British pound to 5.9810/5.9874 from 5.9750/5.9807 and dropped against the euro from 5.0492/5.0541 to 5.0555/5.0608.
The local currency traded mixed against its ASEAN counterparts.
It improved against the Indonesian Rupiah to 286.8/287.2 (from 287.0/287.3 at Tuesday’s close) and appreciated against the Philippine Peso by 8.03/8.05 to 8.02/8, 04.
Against the Singapore dollar fell to 3.4838/3.4878 from 3.4793/3.4829 yesterday and against the Thai baht to 12.8322/12.8507 from 12.7874/12.8048.
FOLLOW US ON X: CLICK HERE
