KUALA LUMPUR: The ringgit closed easier against the US dollar today as market participants continue to focus on the prospect of a possible US rate cut, said an analyst.
At 6 pm, the ringgit slipped to 4.6725/6745 against the US dollar from last Friday's close of 4.6700/6730.
It was reported that Federal Reserve officials have sent the strongest signals on cutting interest rates ahead of the next Federal Open Market Committee (FOMC) meeting to be held on July 30-31.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid elaborated that despite the easier ringgit, the Fed Fund futures contract showed the odds for a rate cut in September is gaining momentum.
"The US Dollar Index (DXY) remained below the 105 points for three consecutive days. China's second quarter 2024 GDP came in today at 4.7 per cent and fell short from the market estimates of 5.1 per cent.
"As such, markets are expecting more economic stimulus to be announced by China's authority in order to stem further slowdown in growth,” he added.
Mohd Afzanizam added that while the Chinese yuan and ringgit tend to have strong correlation, market participants continue to focus on the prospect for the US rate cut at the current juncture.
For today’s trading, the local note opened at 4.6725 against the US dollar, hit as low as 4.68 during the day and retreated at 4.6715 against the US dollar.
Meanwhile, the ringgit was traded lower against other major currencies.
It had weakened against the Japanese yen to 2.9578/9593 from 2.9338/9359 last Friday, weakened against the British pound to 6.0658/0684 from 6.0481/0520 previously and slid against the euro to 5.0991/1013 from 5.0838/0870 on Friday.
However, it traded mixed against ASEAN currencies, slipped against the Singapore dollar to 3.4810/4827 from 3.4768/4793 previously, rising against the Philippine peso to 7.99/7.99 from 8.00/8.00 on Friday and appreciated against the Thai baht to 12.9007/9116 from 12.9023/9160 previously.
The local unit strengthened against the Indonesian rupiah to 288.9/289.2 from 289.3/289.7 previously. - Bernama
