Ringgit appreciates vs US dollar at the close

KUALA LUMPUR: The ringgit appreciated against the US dollar at the close on Monday due to renewed buying interest, driven by optimism over potential interest rate cuts in the United States (US), according to an analyst.

At 6 pm, the ringgit rose to 4.6850/6875 versus the greenback from Friday’s close of 4.6865/6890.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiments remain positive with the ringgit continuing to be well supported at RM4.68, while the US dollar Index (DXY) was steady at around 104 points.

Speaking to Bernama, he said a series of US Federal Reserve (Fed) speakers are set to address the public this week, shaping market expectations.

The Federal Open Market Committee (FOMC) meeting minutes will be released on May 23 which will help markets to better understand the line of thinking among the Fed members.

"It appears that the anticipation for a rate cut in the US has been building since early May. However, the current situation is still highly fluid as the Fed remains hawkish in the inflation assessment, so the ringgit’s movement is expected to remain in a narrow range in the near term,” Mohd Afzanizam added.

At the close, the ringgit was traded mostly lower against a basket of major currencies.

The local unit was weaker versus the Japanese yen at 3.0084/0104 from Friday’s closing of 3.0071/0089, fell against the euro to 5.0921/0948 from 5.0816/0843 last week and slid vis-a-vis the British pound to 5.9518/9550 from 5.9303/9335 previously.

The local note traded mixed against ASEAN currencies, increasing against the Philippines’ peso to 8.09/8.10 from 8.13/8.14 as well as the Indonesian rupiah at 293.1/293.5 from 293.6/294.0 previously.

However, it had depreciated against the Singapore dollar to 3.4809/4831 from 3.4784/4806 at Friday’s close and slipped versus the Thai baht to 12.9987/13.0100 from 12.9390/9516 previously. - Bernama