BERNAMA – The ringgit extended its gains to end stronger against the US dollar yesterday amid rising expectations for an interest rate cut in the United States (US), an analyst said.
At 6pm, the local note rose to 4.3360/3400 versus the greenback from Wednesday’s close of 4.3505/3560.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is well supported yesterday after the US Dollar Index declined following weak labour market data in the US.
The Jobs Opening and Labour Turnover Survey (JOLTS) released on Wednesday showed US job openings declined more than expected to 7.673 million in July, compared with 7.91 million in June.
“It has become prevalent with the job opening falling more than expected in July, suggesting that the Federal Reserve may need to be decisive to ease its monetary policy to achieve the so-called soft landing,” Mohd Afzanizam told Bernama.
On the home front, the Bank Negara Malaysia (BNM) Monetary Policy Committee (MPC) has decided to maintain the overnight policy rate (OPR) at three per cent at its meeting earlier yesterday.
Mohd Afzanizam said the OPR is deemed to be supportive of growth. Therefore, he believes the BNM may keep the OPR steady at 3.00 per cent for the rest of 2024.
