However, the local currency fell against the greenback amid renewed expectations of a US interest rate hike.
This follows stronger-than-expected US inflation data.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit fell by almost 0.45% against the greenback today as stronger-than-expected US inflation fuelled expectations of a rate hike in December.
“The odds of a rate hike at the December Federal Open Market Committee meeting rose to more than 80% after the October US consumer price index reading came in above expectations,” he told Bernama.
Afzanizam said the prospect of a 50-basis-point increase in the federal funds rate at the December meeting lifted demand for the greenback, with the US Dollar Index rising 0.18% to 102.412 points.
The ringgit traded higher against a basket of major currencies.
At 6pm, the local currency fell to 4.0710/4.0745 against the greenback from 4.0540/4.0580 at Tuesday’s close.
It strengthened against the euro to 4.5343/4.5382 from 4.5514/4.5559 at yesterday’s close and appreciated vis-a-vis the British pound to 5.4246/5.4293 from 5.4425/5.4479, and was marginally higher against the Japanese yen at 2.5609/2.5632 from 2.5642/2.5669.
The ringgit traded mostly higher against its Asean peers.
It appreciated against the Thai baht to 12.0963/12.1117 from 12.1337/12.1497, climbed vis-a-vis the Indonesian rupiah to 224.3/224.6 from 224.4/224.7 and rose against the Philippine peso to 6.43/6.44 from 6.44/6.45.
However, the local currency edged down against the Singapore dollar to 3.1745/3.1775 from 3.1726/3.1758 on Tuesday. - FMT
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