The ringgit opened stronger against the US dollar, supported by rising expectations of monetary easing by the Federal Reserve (Fed) next week.
At 10:14 am, the ringgit was at 4.1200, strengthening by 0.02% against the US dollar since opening early Thursday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist, Dr. Mohd Afzanizam Abdul Rashid explained that the US Dollar Index (DXY) declined 0.48% to 98.880 points following rising expectations of a possible interest rate cut by the Fed next week.
He also noted that the ADP employment report recorded a decline of 32,000 in November, thus proving that the labour market in the United States (US) is weakening and requires the Fed to intervene through monetary stimulus measures.
Meanwhile, the ringgit rose to a fresh 14-month high of 4.1200 against the US dollar as continued expectations of a possible Fed rate cut continued to weigh on the US dollar.
At the open, the ringgit traded lower against major currencies.
It depreciated against the yen to 2.6499/6565 from 2.6476/6501 and declined against the British pound to 5.4852/4986 from 5.4697/4744.
However, it rose against the euro to 4.7947/8064 from 4.7982/8080 yesterday.
The ringgit was also traded higher against ASEAN currencies.
It strengthened against the Singapore dollar to 3.1767/1839 from 3.1810/1839 and rose against the Indonesian rupiah to 247.1/247.9 from 247.7/248.1.
It also rose against the Philippine peso to 6.97/7.00 from 6.99/7.00 and rose against the Thai baht to 12.8780/9190 from 12.9024/9186 previously.
