Ringgit rises as US rate cut hopes drag dollar below key level
KUALA LUMPUR, Nov 26 — The ringgit continued to strengthen against the US dollar as expectations of a US interest rate cut in December build, putting pressure on the greenback, an analyst said.
At 8am, the ringgit appreciated to 4.1250/1365 against the US dollar compared with yesterday’s close of 4.1300/1345.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar Index (DXY) had dropped below 100 points to 99.809, as the latest US data came in below estimates, while the two- and 10-year US Treasury yields eased three basis points each to close at 3.43 per cent and 4.01 per cent respectively.
Mohd Afzanizam said US retail sales in September rose 0.2 per cent month-on-month, well below the consensus estimate of 0.6 per cent.
“More importantly, the Conference Board Consumer Confidence Index fell more than expected to 88.7 points in November against street estimates of 93.5 points, as American households remain concerned about the cost of living amid higher import tariffs,” he added.
He added that the ringgit is expected to chart higher in the region of RM4.12 to RM4.13, following increased bets on a US rate cut next month.
At the opening, the ringgit was traded mostly lower against a basket of major currencies.
It firmed against the yen to 2.6408/6485 from 2.6420/6451 but weakened against the euro at 4.7706/7839 from 4.7635/7687 at yesterday’s close, and depreciated against the British pound to 5.4285/4436 from 5.4235/4294.
The ringgit traded higher against Asean currencies.
It rose against the Philippine peso to 7.00/7.02 from yesterday’s closing of 7.01/7.02, improved against the Singapore dollar to 3.1684/1775 from 3.1708/1745, strengthened against the Thai baht to 12.7717/8184 from 12.7793/7999 yesterday, and up against the Indonesian rupiah to 247.6/248.4 from 247.9/248.3.
