At 6pm, the local note climbed to 4.2260/2310 against the greenback.
KUALA LUMPUR: The ringgit continued to close higher against the US dollar as expectations of an interest rate cut by the US Federal Reserve (Fed) gained momentum, says an analyst.
At 6pm, the local note climbed to 4.2260/2310 against the greenback from Monday’s close of 4.2350/2385.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that risky assets such as equities have been rising as a lower interest environment would be positive for corporate finances, especially on their cost of borrowings.
Commenting on the Fed, the economist noted that a series of Fed speakers are expected to shed more light on the future direction of US interest rates.
He noted that several Fed officials, San Francisco Fed president Mary Daly, Boston Fed president Susan Collins, and Fed governor Lisa Cook, will be speaking to the public tomorrow.
“Our sense is that the market would want to hear the latest conviction among the Fed as to how the interest rate would evolve in the months to come, especially in the September Federal Open Market Committee meeting,” he told Bernama.
