KUALA LUMPUR, Sept 27 — The ringgit regained its strength against the US dollar at the opening today after experiencing a technical correction yesterday, said an analyst.
At 8.03am, the local currency traded higher at 4.1235/1320 versus yesterday’s close of 4.1430/1485.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said yesterday’s ringgit correction was due to an overbought position, which led traders to pocket some gains.
“The general view on interest rate cuts in the United States is still intact for the upcoming Federal Open Market Committee meeting in November and December.
“Therefore, tonight’s data on personal consumption expenditure (PCE) inflation will be closely scrutinised by the investing community,” he told Bernama.
Afzanizam said the immediate support level for the ringgit is at RM4.0728. He believed the local note would gravitate towards such a direction given the overnight policy rate will likely remain until year-end, and perhaps into next year.
“This would increase the appeal of the ringgit; especially (when) Asian central banks, such as Indonesia and the Philippines, have commenced their monetary easing,” he added.
The ringgit traded firmer against a basket of major currencies.
It appreciated vis-a-vis the Japanese yen to 2.8442/8504 from 2.8634/8674 at yesterday’s close, rose higher versus the euro to 4.6084/6179 from 4.6157/6218, and advanced against the British pound to 5.5284/5398 from 5.5317/5391 previously.
The local note also traded better against Asean currencies.
It ticked up against the Singapore dollar to 3.2109/2181 from 3.2204/2249 previously and inched up against the Philippine peso to 7.36/7.39 from 7.40/7.41 yesterday.
The ringgit improved versus the Indonesian rupiah to 271.8/272.6 versus 273.1/273.6 yesterday and rose to 12.7229/7570 from 12.7242/7489 against the Thai baht previously.
— Bernama
