THE ringgit traded higher today as the US dollar weakened on expectations of a softer interest rate outlook, not only in the United States but globally.

At 6pm, the local note rose to 4.4020/4065 versus the greenback from Monday’s closing of 4.4175/4195.

The US Dollar Index has retreated, dropping to 101.908 on recent developments such as weak US manufacturing data, while the Reserve Bank of Australia (RBA) has decided to pause interest rates at 3.6%.

“Today, RBA kept its cash rate unchanged at 3.6%. Previously, the State Bank of Vietnam reduced its benchmark interest rate by 100 basis points in mid-March,” Bank Muamalat chief economist Mohd Afzanizam Abdul Rashid said.

“While we are still unsure whether the US Federal Reserve might pause (interest rate hikes) in the next meeting in May, the incoming data seem to suggest the economy has been showing tentative signs of weakening.”

Meanwhile, the ringgit traded lower against a basket of major currencies.

It fell versus the British pound to 5.5078/5134 from 5.4552/4576 at Monday’s close, eased vis-a-vis the euro to 4.8118/8167 from 4.7930/7952 and depreciated against the Japanese yen to 3.3135/3171, compared with 3.3127/3145 previously.

The ringgit also traded lower against Asean currencies.

It inched down versus the Singapore dollar to 3.3198/3234 from 3.3182/3199 at Monday’s close, was flat vis-a-vis the Philippine peso at 8.07/8.09 from 8.07/8.07 and eased versus the Indonesian rupiah to 295.40/295.80 from 295.00/295.30.

It weakened against the Thai baht to 12.8612/8800 from 12.8419/8537 previously. – Bernama, April 4, 2023.