The ringgit continued its appreciation against the US dollar today as investors are bullish on the expectations that the US Federal Reserve will cut interest rates, said an analyst.

At 8am, the ringgit strengthened to 4.3700/3850 against the US dollar compared with 4.3805/3850 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the persistent decline in the US dollar index suggested that the highly anticipated interest rate cut in the US would occur as early as September this year.

This is as traders lower their demand for the greenback, he said.

“This has benefitted the currencies in emerging economies, including the ringgit.

“The Jackson Hole Symposium in the US this week would provide colour on this front as Fed chairperson Jerome Powell would shed more light on the potential rate cut in September,” he told Bernama.

The Fed’s Jackson Hole Economic Symposium is an annual conference at the Jackson Hole Valley in the United States attended by central bank leaders from around the world.

Afzanizam added that the next support level for the ringgit is 4.30 against the US dollar, assuming that the US is bullish about the interest rate cut.

Meanwhile, the ringgit traded mostly higher against a basket of major currencies.

It increased vis-a-vis the Japanese yen to 2.9799/9905 from 2.9946/9979, appreciated against the British pound to 5.6771/6966 from 5.6784/6843 at Monday’s close, but fell against the euro to 4.8446/8612 from 4.8339/8388 yesterday.

The ringgit was also traded mostly higher against Asean currencies.

The local note rose against the Singapore dollar to 3.3412/3530 from 3.3424/3461 at Monday’s close and was higher against the Philippine peso at 7.71/7.74 from 7.73/7.74 previously.

It also inched up versus the Indonesian rupiah to 280.9/282.1 compared with 281.6/282.1 at yesterday’s close but weakened vis-a-vis the Thai baht to 12.7142/7664 from 12.7126/7308 previously.

- Bernama

PM grateful local inflation not as bad as in Turkiye

PM grateful local inflation not as bad as in Turkiye

Ringgit moving in right direction, reflects strong fundamentals - BNM

Ringgit moving in right direction, reflects strong fundamentals - BNM

Fact-check: What did Anwar say about ringgit's performance?

Fact-check: What did Anwar say about ringgit's performance?