At 6pm, the local note was at 4.1840/1870 compared with yesterday’s close of 4.1860/1890. — Reuters pic
KUALA LUMPUR, Oct 4 — The ringgit closed higher against the US dollar today, as the dollar continues to weaken on the prospect of another interest rate cut by the US Federal Reserve (US Fed).
At 6pm, the local note was at 4.1840/1870 compared with yesterday’s close of 4.1860/1890.
An analyst said following the release of a disappointing US services data yesterday, the US Fed is expected to cut the interest rate further this month.
“The data indicates a downtrend in manufacturing and service sectors in the world’s largest economy, which triggered recession fears,” she said.
On the local front, she said investors are waiting for the tabling Budget 2020 next week, which will be the key highlight.
“A comprehensive budget drafted to buffer the local economy from global economic slowdown is expected to boost the ringgit further,” she said.
Meanwhile, the ringgit closed lower against a basket of other currencies.
It declined against the Singapore dollar to 3.0332/0363 from 3.0287/0320 at yesterday’s close and fell against the yen to 3.9194/9230 from 3.9059/9102.
The local note depreciated against the euro to 4.5928/5977 from 4.5820/5870 and was lower against the British pound to 5.1631/1680 from 5.1408/1462. — Bernama