KUALA LUMPUR, Sept 30 – The ringgit extended last week’s gains, opening stronger against the US dollar on Monday, supported by ongoing positive sentiment towards the local currency, an analyst said.
At 8.04 am, the ringgit was trading at 4.1150/1280, up from Friday’s close of 4.1230/1280.
Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, said the ringgit is expected to remain positive, though some traders may take the opportunity to lock in profits following its recent broad-based appreciation.
On the global front, he noted mixed economic signals from the United States. The headline personal consumption expenditures (PCE) price index moderated to 2.2 per cent in August, while the core PCE held steady at 2.7 per cent.
Despite this, the US Federal Reserve is expected to maintain its monetary easing strategy in November and December.
“With that in mind, this week’s focus will be on US data, including the ISM Index for manufacturing and services, along with several key labour markets indicators such as the job openings and labour turnover survey (JOLTS), ADP employment change and nonfarm payroll (NFP),” he told bernama.
Mohd Afzanizam highlighted that the immediate support level for the ringgit is at RM4.0728, with the currency potentially moving in that direction.
