THE ringgit closed higher today for the third straight session against the greenback on rising expectations for an early US interest rate cut.

This followed fresh dovish talk, this time by Christopher Waller, a respected and previously hawkish member of the US Federal Reserve yesterday.

At 6pm, the ringgit bounced to 4.6495/6550 against the greenback from yesterday’s close of 4.6690/6725.

SPI Asset Management managing partner Stephen Innes said the market basically understood Waller’s comments regarding the potential for rate cuts early next year due to slowing inflation in the United States.

“The magnitude of the currency movement was significant, especially with important tier one economic data set to be released later this week.

“Specifically, traders are awaiting the US Personal Consumption Expenditures inflation reading on Thursday and the Institute for Supply Management manufacturing purchasing managers’ index on Friday,” he told Bernama.

Consequently, he said traders might adopt a cautious approach as they await the release of this crucial data. Innes reckons that the market is in a phase of reducing the strength of the US dollar over the longer term.

At the close, the ringgit traded mostly higher versus a basket of major currencies.

It appreciated vis-a-vis the euro at 5.1014/1075 from 5.1140/1178 at yesterday’s close, was marginally higher against the British pound at 5.8951/9021 from 5.8965/9009 but dropped against the Japanese yen to 3.1513/1553 from 3.1430/1456.

The local note traded higher against other Asean currencies.

It was marginally higher versus the Singapore dollar at 3.4909/4953 from 3.4948/4976 and appreciated versus the Philippines peso to 8.39/8.41 from 8.42/8.43, rose against the Thai baht to 13.3484/3722 from 13.3629/3791.

It edged up against the Indonesian rupiah to 301.9/302.5 from 302.4/302.8 at yesterday’s close. – Bernama, November 29, 2023.