KUALA LUMPUR: The ringgit continued its positive momentum to close higher against the US dollar on Wednesday as more investors returned to emerging currencies on mixed signals from the global economic front, dealers said.
At 6 pm, the ringgit appreciated to 4.6400/6440 versus the greenback from Tuesday’s close of 4.6405/6445.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the ringgit was weaker in the early morning session at 4.6580 but recovered towards the end of the day at 4.6400.
"Clearly, markets are anxious about the timing for a rate cut in the US. There seems to be a divergence between what the market expects, namely a rate cut in March this year, and what the Federal Open Market Committee (FOMC) members were saying in their minutes.
"Hence, tomorrow’s consumer price index (CPI) will be closely monitored by the market for confirmation after the stronger-than-expected nonfarm payrolls (NFP) data in December (last year),” he said.
Meanwhile, at the close, the ringgit was traded higher against a basket of major currencies.
It strengthened versus the euro to 5.0789/0833 from 5.0790/0834 yesterday, appreciated vis-a-vis the British pound to 5.9044/9095 from 5.9092/9143 on Tuesday and increased against the Japanese yen to 3.2018/2047 from 3.2235/2265 previously.
The ringgit was also traded higher against Asean currencies.
It appreciated against the Singapore dollar to 3.4851/4883 from 3.4912/4947 at Tuesday’s close and rose vis-à-vis the Philippine peso to 8.24/8.25 from 8.28/8.29.
The local currency appreciated versus the Indonesian rupiah to 297.9/298.4 from 298.9/299.4 and went up against the Thai baht to 13.2598/2777 from 13.2737/2928 yesterday. - Bernama
