Ringgit Rises Vs US Dollar On Shutdown, Rate Cut Expectations

By Harizah Hanim Mohamed

KUALA LUMPUR, Oct 1 (Bernama) -- The ringgit extended gains against the US dollar on Wednesday, opening higher as concerns over a potential United States government shutdown weighed on the greenback.

At 8.02 am, the local note stood at 4.1980/2190 against the US dollar, up from Tuesday’s close of 4.2050/2090.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said persistent worries over a US shutdown were likely to support the ringgit, while expectations of lower US interest rates could further weaken the dollar.

“The local note may attempt to break the psychological level of 4.20 after closing 0.25 per cent higher yesterday,” he told Bernama.

The ringgit also opened higher against a basket of major and regional currencies.

It firmed to 2.8348/8491 against the Japanese yen from 2.8420/8447 at Tuesday’s close, rose to 5.6417/6699 versus the British pound from 5.6532/6586, and improved to 4.9251/9497 against the euro from 4.9405/9452.

The local note advanced to 3.2530/2695 against the Singapore dollar from 3.2604/2638, edged up against the Indonesian rupiah at 251.9/253.2 from 252.3/252.6, appreciated versus the Philippine peso at 7.21/7.25 from 7.22/7.24, and improved to 12.9265/9963 against the Thai baht from 12.9744/9927.

-- BERNAMA