Ringgit extends gains to close higher as US rate cut expectations stay elevated


KUALA LUMPUR: The ringgit extended its gains to close marginally higher against the greenback on Friday, as expectations of an interest rate cut next week by the US Federal Reserve (Fed) stayed elevated.

At 6 pm, the ringgit climbed to 4.1105/1140 versus the greenback compared to Thursday’s close of 4.1115/1165.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiments were centered on the Federal Open Market Committee’s Dec 9-10 meeting. "Most traders and investors are expecting the Fed to deliver a 25 basis points cut,” he told Bernama.

Besides that, he said market players were also eyeing the delayed September US personal consumption expenditures (PCE) index report due later tonight, which will shed more clarity on the American central bank’s policy outlook.

At the close, the ringgit trended higher against major currencies.

It climbed versus the British pound to 5.4859/4905 from 5.4868/4935 at Thursday’s close, strengthened against the euro to 4.7912/7953 from 4.8014/8075, and edged up vis-à-vis the Japanese yen to 2.6536/6561 from 2.6555/6589.

The local note traded mixed against ASEAN currencies.

It gained versus the Singapore dollar to 3.1741/1773 from 3.1747/1788 at Thursday’s close and was flat against the Indonesian rupiah at 246.8/247.2 from 246.8/247.3 previously.

The ringgit inched down against the Philippine peso to 6.97/6.98 from 6.96/6.98 and fell vis-à-vis the Thai baht to 12.9054/9221 from 12.8304/8520 yesterday.  - Bernama

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