The ringgit rose slightly against the US dollar on expectations of a change in the United States' (US) monetary policy and positive sentiment towards the market currency which continues to grow rapidly.
At 10:37 am, the ringgit was at 4.1290, strengthening by 0.02% against the US dollar since opening early Friday trading in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid explained that the US Dollar Index was below 100 points as the market expected the Federal Reserve (Fed) to cut interest rates in December.
He also stated that the market is now assessing the chances of a December interest rate cut to 85% from 40% last week, adding that the shift in expectations would lower US Treasury yields.
Since November 14, US Treasury yields on 2-year and 10-year bonds have declined by 17 and 14 basis points respectively, now standing at 3.45% and 4.00%.
In early trade, the ringgit was traded mixed against a basket of major currencies.
It rose against the yen to 2.6379/2.6448 from 2.6417/2.6444 yesterday, but depreciated against the British pound to 5.4589/5.4728 from 5.4576/5.4629 and was little changed against the euro to 4.7823/4.7944 from 4.7869/4.7889.
The ringgit was also traded higher against ASEAN currencies.
It rose against the Singapore dollar to 3.1794/3.1877 from 3.1817/3.1850 yesterday, and strengthened against the Thai baht to 12.7904/12.8342 from 12.8097/12.8285.
It also rose against the Indonesian rupiah to 247.8/248.5 from 248.3/248.6 and rose against the Philippine peso to 7.01/7.03 from 7.02/7.04 previously.
