KUALA LUMPUR: The ringgit staged a rebound on Friday after recent losses to finish the week higher against the American dollar despite a rising greenback buoyed by anticipation of slower US interest rate cuts, an economist said.
At 6 pm, the local note rose by 125 basis points to 4.4715/4780 against the greenback compared with yesterday’s close of 4.4840/4870.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the local currency bounced back today after having endured a run of losses this week. "The markets could have become uneasy with the latest comments by US Federal Reserve (Fed) chairman Jerome Powell last night that the central bank might not be easing its monetary policy hastily," he told Bernama.
It was reported that in his remarks to business leaders in Dallas on Thursday, Powell said strong US economic growth will allow policymakers to take their time in deciding how far and how fast to lower interest rates.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It appreciated versus the British pound to 5.6573/6656 from 5.6750/6787 at Thursday’s close but slid vis-a-vis the euro to 4.7224/7292 from 4.7172/7203 and went down against the Japanese yen to 2.8774/8818 from 2.8720/8741.
The local unit traded mixed against its ASEAN peers.
It strengthened against the Philippine peso to 7.61/7.63 from 7.63/7.63 and climbed versus the Indonesian rupiah to 281.6/282.2 from 282.6/282.9 from Thursday’s close.
It slipped against the Thai baht to 12.8307/8541 from 12.7706/7838 at yesterday’s close and weakened vis-a-vis the Singapore dollar to 3.3330/3381 from 3.3284/3309. - Bernama
