KUALA LUMPUR: The ringgit ended the week on a strong note against the US dollar, closing at 4.6550/6605 on Friday versus Thursday’s closing of 4.6600/6625.
The local currency was boosted by rising market expectations of an interest rate cut by the United States (US), in line with the World Interest Rate Probability (WIRP) forecast.
The WIRP tool, used by traders, forecasts a 105.5 per cent probability for the US Federal Reserve (US Fed) to cut the benchmark rate in September.
Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid said that the US Fed is set to announce its favourite inflation gauge tonight.
"The US headline and core personal consumption expenditures price index is expected to decrease to 2.4 per cent and 2.5 per cent in June, from 2.6 per cent 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 5.50 per cent.
Meanwhile, the local note traded firmer against a basket of major currencies.
The ringgit appreciated against the British pound to 5.9901/9971 from 6.0039/0072 at the close on Thursday, increased vis-a-vis the euro to 5.0530/0590 from 5.0570/0597 yesterday, and strengthened versus the Japanese yen to 3.0176/0214 versus 3.0598/0616 previously.
At the same time, the local note traded mixed against ASEAN currencies.
It appreciated against the Indonesian rupiah to 285.5/286.0 from 286.7/287.0 at Thursday’s close and inched up against the Singapore dollar to 3.4641/4684 from 3.4714/4735 yesterday.
However, the local note slid against the Philippines’ peso to 7.97/7.99 from 7.95/7.96 yesterday and fell vis-a-vis the Thai baht to 12.9069/9268 from 12.8875/9005 previously. - Bernama
