Ringgit extends gains on softer US data, Fed rate cut

The local currency strengthens to 4.1000/4.1100, levels last traded against the greenback in April 2021.

KUALA LUMPUR:

 The ringgit opened firmer against the greenback for a second day, buoyed by softer US data and the Federal Reserve’s 25-basis-point lending rate cut.

At 8am, the ringgit strengthened to 4.1000/4.1100 against the US dollar from 4.1040/4.1105 at Thursday’s close.

The local note was last traded at this level against the US dollar four years and seven months ago, on April 28, 2021, at 4.1000/4.1050.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index fell 0.44% to 98.348 as recent data pointed to a softening labour market.

He said the ringgit had traded firmer after the Fed delivered the widely expected 25-basis-point cut to the Fed Funds Rate.

“Today, we expect the ringgit to stay in a tight range and possibly attempt to break the psychological RM4.10 level by the end of the day,” he said.

The ringgit was mixed against major currencies at the open.

It slipped against the British pound to 5.4911/5.5045 from Thursday’s 5.4879/5.4966, weakened versus the euro to 4.8138/4.8256 from 4.8025/4.8101, and eased against the Japanese yen to 2.6368/2.6434 from 2.6333/2.6375.

The ringgit was also traded mixed against Asean currencies.

It firmed against the Indonesian rupiah to 245.8/246.5 from 246.1/246.6 but fell against the Singapore dollar to 3.1739/3.1819 from 3.1711/3.1763 at Thursday’s close. It also eased against the Thai baht to 12.9542/12.9940 from 12.9219/12.9505 and was unchanged against the Philippine peso at 6.95/6.97. - FMT