KUALA LUMPUR: The ringgit extended its uptrend to close higher against the US dollar today, lifted by improved risk appetite and growing optimism over a possible resolution to the United States’ (US) government shutdown.
At 6 pm, the ringgit appreciated by 0.4 per cent to 4.1555/1635 against the US dollar from Friday’s close of 4.1735/1775, marking its strongest level in 13 months, last seen at 4.1625 on Oct 2, 2024.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit’s appreciation was in tandem with the broader strength of regional currencies, supported by improving market sentiment.
"The possible end to the US government shutdown has boosted optimism among investors, with expectations that economic activities in the US will resume. Additionally, key data such as labour market indicators will soon be released.
"These developments are likely to strengthen the case for a Federal Reserve interest rate cut in December, which would further support emerging market currencies, including the ringgit,” he told Bernama.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It firmed versus the yen to 2.6954/7008 from 2.7192/7220 at the close last Friday, and climbed against the euro to 4.8071/8163 from 4.8154/8200 last week, but depreciated against the British pound to 5.4736/4842 from 5.4660/4713 previously.
At the same time, the local note was traded higher against ASEAN currencies.
It strengthened versus the Singapore dollar to 3.1899/1963 from 3.2015/2048 last Friday, went up against the Indonesian rupiah to 249.4/250.1 from 250.0/250.4 last week, climbed against the Philippine peso to 7.05/7.06 from 7.07/7.08 previously, and increased vis-a-vis the Thai baht to 12.8367/8670 from 12.8999/9174 last week.- Bernama
