KUALA LUMPUR: The ringgit traded higher today as the US dollar weakened on expectations of a softer interest rate outlook, not only in the US but globally.
At 6pm, the local currency rose to 4.4020/4.4065 versus the greenback compared to Monday’s closing rate of 4.4175/4.4195. The US Dollar Index has retreated, dropping to 101.908 points on recent developments such as weak US manufacturing data while the Reserve Bank of Australia has decided to pause interest rates at 3.60%.
“Today, the RBA kept its cash rate unchanged at 3.60%. Previously, the State Bank of Vietnam reduced its benchmark interest rate by 100 basis points in mid-March. “While we are still unsure whether the US Federal Reserve might pause in the next meeting in May, the incoming data seems to suggest the economy has been showing tentative signs of weakening,’’ Bank Muamalat chief economist Afzanizam Abdul Rashid told Bernama.It fell versus the British pound to 5.5078/5.5134 from 5.4552/5.4576 at Monday’s close, eased vis-a-vis the euro to 4.8118/4.8167 from 4.7930/4.7952 and depreciated against the Japanese yen to 3.3135/3.3171 compared with 3.3127/3.