THE ringgit rebounded from a four-day losing streak to end higher today, driven by improved sentiment – as the US debt ceiling deal was resolved – and expectations that the Federal Reserve would pause interest rate hikes in June. 

At 6pm, the local note appreciated to 4.5745/5785 against the greenback compared to yesterday’s close of 4.6110/6165. 

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said it appeared that the US debt limit stalemate had been resolved, paving the way for the US government to honour their debt obligations and continue with spending programmes. 

“The ringgit appreciated against the US dollar to RM4.5745 from the previous day’s closing of RM4.6110. The immediate resistant level is currently situated at RM4.5491,” he told Bernama. 

“Perhaps next week, the US dollar/ringgit might move towards this direction as the Federal Reserve is expected to be guarded in their assessment at the upcoming Federal Open Market Committee meeting from June 13 to 14,” he said. 

At today’s close, the ringgit was also higher against a basket of major currencies. 

It rose vis-a-vis the British pound to 5.7323/7373 from 5.7407/7475 at yesterday’s close, increased against the euro at 4.9254/9297 from 4.9356/9415 and was slightly higher against the Japanese yen to 3.2957/2989 from 3.2995/3036 yesterday. 

The local note also traded higher against other Asean currencies. 

The ringgit appreciated against the Indonesian rupiah to 305.0/305.5 from 307.4/308.0 at yesterday’s close, gained vis-a-vis the Thai baht to 13.2402/2591 from 13.2569/2792 and rose against the Philippine peso to 8.18/8.19 from 8.19/8.21 previously. 

It was almost flat at 3.4026/4059 against the Singapore dollar from 3.4095/4138 yesterday. – Bernama, June 2, 2023.