The local currency ended the day at 4.2450/4.2465 against the dollar, up from yesterday’s close of 4.2575/4.2625.

SPI Asset Management managing partner Stephen Innes attributed the ringgit’s advance to weakening sentiments for the US dollar ahead of the Federal Reserve’s (Fed) decision on interest rates next week.

The market is now expecting a hike of only 25 basis points (bps), down from 50bps as speculated earlier as the inflation rate begins to moderate.

Innes said the local currency was also buoyed by ongoing support from China’s reopening, which benefitted the local economy.

“Similar to Thailand, perhaps not to the same extent just yet, Chinese travellers are providing a significant boost to the local economy; hence the demand for the ringgit from an inbound tourist perspective remains strong,” he told Bernama.

At the close, the ringgit traded mostly higher against a basket of major currencies.

The local currency appreciated against the Singapore dollar to 3.2345/3.2359 from 3.2352/3.2392 at yesterday’s close, climbed versus the euro to 4.6254/4.6270 from 4.6322/4.6376 and gained against the Japanese yen to 3.2671/3.2685 from 3.2790/3.2831.

However, it declined vis-a-vis the British pound to 5.2583/5.2601 from 5.2418/5.2480 previously.