KUALA LUMPUR: The ringgit closed higher against the US dollar, amid an anticipation of a cut in interest rates by the US Federal Reserve (Fed), said a dealer.
At 6pm, the local currency appreciated to 4.1460/1500 against the greenback from 4.1720/1750 on Wednesday.
FXTM research analyst Lukman Otunuga said appetite towards the US dollar was weakening at lightning speed on market confidence that the Fed would be cutting interest rates over the coming months.
He expects fund flows to move back towards emerging markets moving forward, with the equity markets and currencies continuing to edge higher against the greenback.
“Weakness in the US dollar will mean a coordinated round of strength for currencies across the world. This rally will stretch across multiple corners including the yuan, ringgit, rand and the peso.
“(But) It must also be kept in mind that a rate cut in July is contingent on the outcome of the G20 meeting between US President Donald Trump and Chinese President Xi Jinping,“ Lukman said in note today.
At close, the ringgit was mostly lower against a basket of major currencies.
The local currency weakened against the pound to 5.2733/2792 from 5.2459/2505 yesterday, and also fell against the Singapore dollar to 3.0562/0596 from 3.0508/0535.
The ringgit was higher against the yen at 3.8453/8494 from 3.8476/8515 and against the euro, the local currency was traded at 4.6862/6924 from 4.6731/6781. — Bernama
