malaysiangKUALA LUMPUR, The ringgit ended the day’s trading at about 4.41 against the US dollar, its best close in 16 months, as the US Federal Reserve was seen to be on track to cutting interest rates in September.
At 6 pm, the ringgit surged to 4.4170/4235 versus the greenback from yesterday’s close of 4.4440/4505.
The local note’s highest closing level previously was 4.4160/4210 registered on April 11, 2023.
The ringgit equalled that level today when it hit its intraday high of 4.4160 at 9.24 am.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest US producer price index print last night, which came in lower than expected at 2.2 per cent in July against consensus estimate of 2.3 per cent and was a pullback from the 2.7 per cent recorded in the preceding month, showed that the disinflationary trend in the United States was proceeding well.
‘The US consumer price index data which will be released tonight should follow a similar trajectory and strengthen the case for monetary
easing.
‘Hence, the prospect of a lower interest rate differential between the Federal Funds Rate and (Malaysia’s) Overnight Policy Rate would improve the appeal of ringgit assets from the foreign investors’ point of view,’ he told Bernama.
Mohd Afzanizam said at present, the current support level is located at RM4.4005.
‘Should it pierce this level, the next support level will be at 4.3000,’ he added.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It rose versus the Japanese yen to 3.0027/0073 from 3.0053/0099 at yesterday’s close and appreciated against the British pound to 5.6754/6838 from 5.6839/6922, but it weakened vis-a-vis the euro to 4.8684/8756 from 4.8520/8591 previously.
Meanwhile, the ringgit traded mixed against ASEAN currencies.
The local note gained versus the Singapore dollar to 3.3582/3634 from 3.3590/3642 at Tuesday’s close and was higher against the Philippine peso at 7.75/7.77 compared with 7.80/7.81 previously.
However, it declined versus the
Indonesian rupiah to 281.7/282.3 from 280.6/281.1 yesterday and slipped vis-a-vis the Thai baht to 12.6399/6668 from 12.6351/6578 previously.
Source: BERNAMA News Agency
