KUALA LUMPUR: The ringgit closed higher against the US dollar and other major currencies on Monday, as positive sentiment after trade agreements signed between Malaysia and the United States during the 47th ASEAN Summit lifted the local currency.
At 6 pm, the ringgit appreciated to 4.2085/2135 against the US dollar from 4.2210/2255 at Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the local note was on "firmer footing” as it rose 0.27 per cent against the greenback.
Apart from that, he said the latest US Consumer Price Index reading, which came in lower than expected in September, suggested that the US Federal Reserve (Fed) is on track to deliver a 25-basis-point interest rate cut when it meets from Oct 28-29. "This would narrow the gap between the Fed funds rate and the overnight policy rate, which could be positive for the ringgit,” he told Bernama.
At the close, the ringgit also traded higher against major currencies.
It climbed against the Japanese yen to 2.7550/7582 from 2.7592/7623 at Friday's close, gained against the British pound to 5.6158/6225 from 5.6232/6292, and was higher versus the euro at 4.8974/9032 from 4.9010/9062.
The local note traded stronger against ASEAN currencies.
It inched up against the Singapore dollar to 3.2460/2502 from 3.2484/2521 at Friday's close, gained versus the Thai baht to 12.8633/8837 from 12.8768/8952, and edged up vis-a-vis the Indonesian rupiah to 253.1/253.6 from 254.2/254.6. The ringgit strengthened versus the Philippine peso to 7.14/7.16 from 7.20/7.21 previously. - Bernama
