THE ringgit closed marginally higher against the US dollar today amid positive sentiment in anticipation of global interest rate cuts next year. 

The greenback nevertheless remained firm as US consumer confidence increased to a five-month high in December. 

At 6pm, the ringgit rose to 4.6525/6565 against the US dollar from yesterday’s close of 4.6555/6605. 

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar versus the ringgit exchange was generally stable around 4.65 today. 

The ringgit is also stronger today against other major currencies as global monetary policies are expected to shift their stance next year. 

“After piercing the previous support level of 4.6611, the local currency appears to be struggling to go lower than 4.65 against the US dollar. 

“This suggests that there are reservations that the shift in monetary stance could happen. In other words, the market is going to be data-dependent,” he told Bernama. 

The US is slated to release its core Personal Consumption Expenditures inflation report tomorrow. 

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies. 

It appreciated against the British pound to 5.8766/8816 from 5.9027/9090 at yesterday’s close and rose vis-a-vis the euro to 5.0922/0965 from 5.1043/1098 previously. 

However, the local currency was lower against the Japanese yen at 3.2519/2549 from 3.2465/2502 yesterday. 

The local note was traded mixed against other Asean currencies. 

It fell against the Philippine peso to 8.37/8.38 from 8.35/8.36 and declined against the Thai baht to 13.3443/3631 from 13.3392/3596 previously. 

However, the ringgit went up versus the Singapore dollar to 3.4973/5006 from 3.5027/5968 and strengthened against the Indonesian rupiah to 299.6/300.0 from 300.1/300.5 yesterday. – Bernama, December 21, 2023. 

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.