Ringgit sustains positive momentum versus US dollar ahead of US rate decision

KUALA LUMPUR: The ringgit opened firmer against the US dollar, hitting the RM4.61 level for a fresh seven-month high, and economists anticipate a further strengthening as investors await the outcome of the Federal Open Market Committee's (FOMC) two-day meeting later today.

At 8.01 am, the ringgit rose to 4.6180/6235 against the greenback from Tuesday's close of 4.6330/6400.

A boost in global market sentiment and strong domestic economic prospects have bolstered the local currency.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the decline in US Treasury yields, which fell four basis points, indicated that more investors were expecting the Federal Reserve to cut interest rates soon.

"The ringgit is now traded in the region of RM4.61 and we foresee RM4.6099 to be the next support level.

"However, there are chances of profit-taking taking place after the FOMC meeting concludes," he told Bernama.

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

The ringgit appreciated against the British pound to 5.9272/9343 from 5.9427/9472 at Tuesday's close and increased vis-a-vis the euro to 4.9944/5.0003 from 5.0044/0082 yesterday, but it eased versus the Japanese yen to 3.0244/0284 versus 2.9845/9870 previously.

The local note fared mixed against ASEAN currencies.

The ringgit edged up against the Indonesian rupiah to 283.2/283.7 from 283.3/283.7 at yesterday's close and stood unchanged versus the Philippine peso at 7.87/7.89.

However, it weakened against the Singapore dollar to 3.4411/4455 from 3.4370/4398 yesterday and declined vis-a-vis the Thai baht to 12.8707/8932 from 12.8319/8470 previously.

-- BERNAMA