“From the interest rate differential perspective, the ringgit looks favourable as Bank Negara is likely to keep the overnight policy rate steady at 3%,” Bank Muamalat's Mohd Afzanizam said.
PETALING JAYA: The ringgit regained its footing after three days of losses to end firmer against the US dollar, emerging as the best performing currency in Asia for the day, an analyst says.
At 6pm yesterday, the local note rose by 0.36% to 4.3505/3560 versus the greenback from Tuesday’s close of 4.3675/3705.
Bank Muamalat (M) Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that concerns over a slowing United States economy have led the market to expect the Federal Reserve to be more decisive in reducing interest rates at the next Federal Open Market Committee meeting on Sept 17-18.
“The interest rate futures have shown a high possibility that the benchmark rates would be lowered to 5%.
“From the interest rate differential perspective, the ringgit looks favourable as Bank Negara is likely to keep the overnight policy rate steady at 3%,” he told Bernama, adding that this would make ringgit assets more appealing to foreign investors.
