Ringgit ends higher against major currencies, easier vs greenback

KUALA LUMPUR - The Malaysian ringgit closed higher against a basket of major currencies on Thursday, but weakened against the US dollar amid ongoing support for the greenback, despite expectations of a rate hike by the US Federal Reserve diminishing. By 6 pm, the ringgit slipped to 4.0830/4.0875 against the US dollar, down from its previous close of 4.0785/4.0820.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid pointed out that the ringgit's movements over the day remained confined to a narrow range of RM4.0820 to RM4.0875. "The likelihood of a US rate hike has decreased to below 50% from a previous estimate of over 70%, following the release of personal consumption expenditures (PCE) inflation data that fell short of market expectations," Rashid told Bernama.

However, he acknowledged that the US dollar remains well-supported, with the US dollar index climbing by 0.30% to 101.759 points. Rashid suggested a potential pause in the Fed's rate hike process in October as markets grappled with the latest PCE inflation rate. Against major currencies, the ringgit gained ground against the euro to 4.6015/4.6066, against the British pound to 5.3896/5.3955, and against the Japanese yen to 2.5781/2.5811.

In terms of ASEAN currencies, the ringgit strengthened against the Singapore dollar to 3.1856/3.1894, against the Thai baht to 12.1111/12.1294, and edged up against the Philippine peso at 6.50/6.51. The ringgit remained stable against the Indonesian rupiah, trading at 227.2/227.6.