Bank Muamalat's Mohd Afzanizam said the ringgit's strength was in line with the decline in the US Dollar Index.
KUALA LUMPUR: The ringgit rebounded to close higher against the US dollar yesterday as the greenback weakened due to the US Federal Reserve’s (Fed) dovish stance.
At 6pm, the ringgit rose to 4.6760/6805 against the greenback from Monday’s close of 4.6920/6965.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was generally on a stronger footing versus the US dollar yesterday, which is in line with the decline in the US Dollar Index by 0.03% to 102.535 points.
Notably, the ringgit was also higher against the Japanese yen by 1.51% to RM3.2376 per 100 yen as the Bank of Japan policy meeting yesterday ended with no change in their ultra-loose monetary stance.
“The performance also showed that the ringgit remained resilient despite the lower-than-expected export volume for November. All in all, narratives for monetary easing in the United States are building momentum which should be positive for the local currency,” he told Bernama.
The ringgit also traded higher versus the British pound and Japanese yen.
