KUALA LUMPUR – The ringgit extended its gains on Wednesday, opening higher against the US dollar, supported by positive sentiment following the success of the 47th ASEAN Summit and Related Summits in Kuala Lumpur, an analyst said.
At 8 am, the ringgit appreciated to 4.1870/2065 per US dollar from Tuesday’s close of 4.1935/1985.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ASEAN Summit had reinforced regional stability and integration, helping to strengthen market confidence.
“That, to some degree, helped reduce the market risk premium and contributed to the ringgit’s appreciation,” he told Bernama.
Meanwhile, he said the US dollar index eased 0.12 per cent to 98.667 points as the US Federal Reserve was widely expected to deliver a 25-basis-point rate cut when the Federal Open Market Committee (FOMC) concludes its meeting tonight.
He added that optimism over a potential trade deal between the United States and China had also improved market sentiment.
“The US Treasury bond yields for the three-month and five-year notes fell to 3.73 per cent and 3.63 per cent, respectively, from 3.81 per cent and 3.71 per cent at the previous auction.
“On that note, the ringgit is expected to remain on a firmer footing, with the dollar-ringgit likely to trade between RM4.19 and RM4.20 today,” he said.
At the opening, the ringgit traded higher against most major currencies.
It rose against the British pound to 5.5591/5850 from 5.5845/5911 at Tuesday’s close, climbed versus the euro to 4.8804/9031 from 4.8884/8942, and inched up against the Japanese yen to 2.7591/7722 from 2.7605/7640.
The local note also strengthened against most ASEAN currencies.
It improved against the Singapore dollar to 3.2372/2525 from 3.2460/2502 at Tuesday’s close, appreciated vis-a-vis the Indonesian rupiah to 252.0/253.3 from 252.4/252.9, and was marginally higher against the Philippine peso at 7.08/7.12 from 7.09/7.10.
However, the ringgit eased against the Thai baht to 12.9420/13.0111 from 12.9214/9424 previously.