KUALA LUMPUR: The ringgit continued to be effectively supported and was barely higher on the shut in the present day though the US greenback remained pretty beneficial in opposition to different main currencies, stated an economist.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid stated the US Dollar Index (DXY) gained 0.17% to 105.229 factors.
“It appears that the US greenback stays pretty resilient despite higher hopes that the US Federal Reserve might reduce its charges this 12 months after the roles report final Friday.
“Thus far, the equities market has proven stellar efficiency following such sentiments, as decrease charges might enhance inventory valuation and therefore improve its attraction to buyers,” he advised eNM.
On the identical be aware, he stated the US Treasury yields have been on a declining development with the 10-year be aware at the moment buying and selling at 4.46%, three foundation factors decrease from the day prior to this.
Meanwhile, SPI Asset Management managing director Stephen Innes stated the prospects for the ringgit seem beneficial, notably in gentle of the anticipated US fee cuts in September and Fed chair Jerome Powell’s stance on ruling out US fee hikes despite persistent inflationary pressures.
“With the upcoming US financial survey information pointing to additional weaknesses in job development, it’s attainable that the greenback might lose floor in opposition to the ringgit, probably slicing down by the 4.70 mark,” he stated.
At 6pm, the ringgit inched as much as 4.7375/4.7400 versus the dollar from yesterday’s shut of 4.7380/4.7405.
At the shut, the ringgit traded higher in opposition to a basket of main currencies.
It rose versus the Japanese yen to three.0646/3.0664 from yesterday’s shut of three.0806/3.0825, strengthened vis-a-vis the British pound to five.9385/5.9416 from 5.9604/5.9635 earlier, and went up in opposition to the euro to five.0971/5.0998 from 5.1033/5.1060 beforehand.
The native be aware traded higher in opposition to Asean currencies.
Against the Thai baht, the ringgit appreciated to 12.8332/12.8459 from yesterday’s 12.8950/12.9070, firmed versus the Singapore greenback to three.4989/3.5010 from 3.5086/3.5107, edged up vis-a-vis the Indonesian rupiah to 295.2/295.5 from 295.6/295.9 and was higher in opposition to the Philippine peso to eight.27/8.28 from 8.28/8.29 beforehand.
