KUALA LUMPUR: The ringgit closed marginally higher against the US dollar today amid positive sentiment in anticipation of global interest rate cuts next year.
The greenback nevertheless remained firm as the US consumer confidence increased to a five-month high in December.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US dollar versus the ringgit exchange was generally stable at around 4.65 today.
He said the ringgit was stronger today against other major currencies as global monetary policies are expected to shift their stance next year.
“After piercing the previous support level of 4.6611, the local currency appears to be struggling to go lower than 4.65 against the US dollar.
“This suggests there are reservations that a shift in monetary stance could happen. In other words, the market is going to be data-dependent,” he told Bernama.
The US is slated to release its core personal consumption expenditures (PCE) inflation report on Friday.
At 6pm, the ringgit rose to 4.6525/4.6565 against the US dollar from yesterday’s close of 4.6555/4.6605.
The ringgit was traded mostly higher against a basket of major currencies.
It appreciated against the British pound to 5.8766/5.8816 from 5.9027/5.9090 at yesterday’s close and rose vis-a-vis the euro to 5.0922/5.0965 from 5.1043/5.1098 previously.
However, the local currency was lower against the Japanese yen at 3.2519/3.2549 from 3.2465/3.2502 yesterday.
The local note was traded mixed against other Asean currencies.
It fell against the Philippine peso to 8.37/8.38 from 8.35/8.36 and declined against the Thai baht to 13.3443/13.3631 from 13.3392/13.3596 previously.
However, the ringgit went up versus the Singapore dollar to 3.4973/3.5006 from 3.5027/3.5968 and strengthened against the Indonesian rupiah to 299.6/300 from 300.1/300.5 yesterday.