Ringgit rebounds after 3-day slide

 

KUALA LUMPUR: 

The ringgit regained its footing after three days of losses to end firmer against the US dollar, emerging as the best-performing currency in Asia for the day, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that concerns over a slowing US economy have led the market to expect the Federal Reserve (Fed) to be more decisive in reducing interest rates at the next Federal Open Market Committee (FOMC) meeting on Sept 17-18.

“The interest rate futures have shown a high possibility that the benchmark rates would be lowered to 5%. 

From the interest rate differential perspective, the ringgit looks favourable as Bank Negara Malaysia (BNM) is likely to keep the overnight policy rate (OPR) steady at 3%,

 he told Bernama, adding that this would make ringgit assets more appealing to foreign investors.

Meanwhile, Afzanizam said the latest report on US job openings and labour turnover survey (JOLTS), to be released tonight, will also be closely monitored by traders.

At 6pm, the local currency rose by 0.36% to 4.3505/4.3560 versus the greenback from yesterday’s close of 4.3675/4.3705.

At the close, the ringgit traded mostly higher against a basket of major currencies.

It was marginally lower versus the Japanese yen at 2.9981/3.0021 compared with 2.9921/2.9943 at yesterday’s close.

However, the local currency strengthened vis-a-vis the euro to 4.8082/4.8143 from 4.8208/4.8242 yesterday and climbed against the British pound to 5.7052/5.7125 from 5.7267/5.7306.

Meanwhile, the ringgit performed better against Asean currencies.

The local currency improved versus the Singapore dollar to 3.3299/3.3344 from 3.3360/3.3386 at yesterday’s close.

It rose vis-a-vis the Thai baht to 12.7096/12.7294 from 12.7537/12.7680 previously, gained against the Indonesian rupiah to 281.0/281.5 from 281.2/281.6, and appreciated versus the Philippine peso to 7.69/7.70 from 7.71/7.72. - FMT