The local currency was boosted by rising market expectations of an interest rate cut by the US, as forecasted by the World Interest Rate Probability (WIRP).

The WIRP tool, used by traders, forecasted a 105.5% probability that the US Federal Reserve will cut the benchmark rate in September.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US Fed is set to announce its favourite inflation gauge tonight.

“The US headline and core personal consumption expenditures price index are projected to have slowed to 2.4% and 2.5% in June, from 2.6% in May,” he told Bernama.

He noted that the Federal Open Market Committee (FOMC) will meet on Aug 1, adding that the Fed Fund Rate is expected to remain at 5.5%.

Meanwhile, the local note traded firmer against a basket of major currencies.

The ringgit appreciated against the British pound to 5.9901/5.9971 from 6.0039/6.0072 at the close yesterday, increased vis-a-vis the euro to 5.0530/5.0590 from 5.0570/5.0597, and strengthened versus the Japanese yen to 3.0176/3.0214 versus 3.0598/3.0616 previously.

At the same time, the local note traded mixed against the Asean currencies.

It appreciated against the Indonesian rupiah to 285.5/286 from 286.7/287 at yesterday’s close and inched up against the Singapore dollar to 3.4641/3.4684 from 3.4714/3.4735.

However, the local note slid against the Philippine peso to 7.97/7.99 from 7.95/7.96 yesterday and fell vis-a-vis the Thai baht to 12.9069/12.9268 from 12.8875/12.9005 previously.