Ringgit rises against US dollar for eighth straight day

The ringgit opened higher against the US dollar for the eighth consecutive trading day today, reflecting continued positive momentum in the local currency at the start of trading.

At 8am, the ringgit rose to 4.0855/4.0915 against the US dollar from Tuesday’s close of 4.0865/4.0900.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said optimism in the financial market, driven by the artificial intelligence (AI)-related theme, continued to dominate global equities, providing support for the Malaysian currency.

Meanwhile, he said the US Federal Reserve (Fed) is expected to keep the federal funds rate steady between 3.75% and 4.0%.

“On that note, the ringgit is likely to continue trading within a narrow range as traders weigh external developments to determine their trading direction. The ringgit is expected to hover between RM4.07 and RM4.08 against the US dollar today,” he added.

The local note also traded higher against a basket of major currencies.

The ringgit strengthened against the British pound to 5.4362/5.4441 from 5.4412/5.4458 at Tuesday’s close, advanced vis-a-vis the Japanese yen to 2.5858/2.5897 from 2.5903/2.5927 and climbed against the euro to 4.5459/4.5526 from 4.5524/4.5563.

Meanwhile, the ringgit traded mixed against its Asean peers.

It traded slightly higher against the Singapore dollar to 3.1881/3.1932 from 3.1883/3.1913 at Tuesday’s close, and edged up against the Thai baht to 12.0884/12.1115 from 12.1010/12.1160 previously.

The local note was almost flat against the Indonesian rupiah at 225.0/225.4 from 225.0/225.3 and the Philippine peso at 6.36/6.38 from 6.36/6.37.