Ringgit extends gain with ongoing buying support
Published on: Friday, March 22, 2024
By: Bernama
Kuala Lumpur: The ringgit continued its upward momentum to open higher on Friday against the US dollar on continued buying support for the local currency.
The local note extended gains on positive sentiment as the US Federal Reserve (Fed) reassured investors about the prospects for interest rate cuts this year. The Fed’s decision to maintain its view of three rate cuts this year has helped to improve market sentiment.
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Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that the Swiss National Bank cut its policy rate by 25 basis points to 1.50% yesterday to combat inflation.
Additionally, he said the Bank of England sounded dovish after it held interest rates steady at 5.25%, saying it is ‘moving in the right direction’ for cuts.
“Hence, regional currencies, including the ringgit, may strengthen against the greenback and we believe the local note will remain steady at around RM4.71 to RM4.72,” he added.
At 9am, the ringgit rose to 4.7310/4.7360 against the greenback from Thursday’s close of 4.7335/4.7400.
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The ringgit traded mostly higher against a basket of major currencies.
It increased versus the euro to 5.1402/5.1457 from 5.1444/5.1477 on Thursday and gained against the British pound to 5.9951/6.0015 from 6.0202/6.0241, but decreased vis-a-vis the Japanese yen to 3.1219/3.1255 from 3.1200/3.1222.
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The ringgit, however, traded mostly lower against other Asean currencies.
It was firmer versus the Thai baht at 13.0151/13.0343 compared with 13.0712/13.0850 at Thursday’s close but eased vis-a-vis the Philippine peso to 8.44/8.45 from 8.41/8.42.
It slid against the Indonesian rupiah to 301.9/302.3 from 300.8/301.1 and slipped against the Singapore dollar to 3.5219/3.5259 from 3.5205/3.5230.
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