KUALA LUMPUR, Sept 23 – The ringgit opened almost flat on Monday and is expected to retain its bullish trend as the United States (US) Federal Reserve’s (Fed) rate cut last week signalled a soft landing for the US economic growth.
At 8 am, the local note was traded at 4.2005/2180 versus the greenback from last Friday’s 4.2005/2070.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Fed aims to ensure maximum employment, indicating a preference for expansion.
“On that note, traders and investors are sanguine on the economic outlook. In a way, there seems to be a risk-on mode which would augur well for the ringgit,” he told Bernama.
Meanwhile, MIDF Amanah Investment Bank Bhd noted that the local note closed at its strongest level in 2.5 years last week.
In its weekly fund flow report, it said the Malaysian ringgit strengthened by 2.3 per cent week-on-week (w-o-w) against the weaker dollar, closing at RM4.204, the strongest level last seen in March 2022.
“Being the currency that gained the most from the Fed’s policy easing, the increased demand also supported ringgit to appreciate against currencies of Malaysia’s major trading partners.
