KUALA LUMPUR: The ringgit closed higher against the US dollar today, buoyed by improved regional sentiment.
At 6pm, the local note rose to 4.2060/2130 versus the greenback from last week’s close of 4.2300/2355.
SPI Asset Management managing partner Stephen Innes said improving trade sentiment, spurred by the United States-China framework deal and ongoing negotiations with key Asian partners, has helped reduce risk premiums across the region.
“This has prompted renewed investor interest in emerging markets such as Malaysia,” he told Bernama.
Innes noted that with US inflation easing, expectations are rising for more aggressive rate cuts, particularly if a new Federal Reserve chair under the Donald Trump administration adopts a more dovish stance. “This could place further pressure on the US dollar, and the ringgit’s strength today is broadly in line with regional currency movements,” he added.
At the close, the ringgit traded higher against a basket of major currencies and its Asean peers. — Bernama
