![Ringgit ends higher on improving domestic demand Ringgit ends higher on improving domestic demand](https://cdn4.premiumread.com/?url=https://malaymail.com/malaymail/uploads/images/2023/09/29/150825.jpg&w=800&q=100&f=jpg&t=2)
The ringgit ended the week higher against the US dollar. — Reuters pic
KUALA LUMPUR, Sept 29 — The ringgit ended the week higher against the US dollar on improving domestic demand following the recent selloff, said an analyst.
At 6pm, the local note rose to 4.6930/6970 against the greenback from Wednesday’s close of 4.7055/7105.
The market was closed on Thursday in conjunction with the Maulidur Rasul (Prophet Muhammad's birthday) celebration.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said while there was a slight improvement, market participants remained attentive to the prospect of higher interest rates in the United States (US).
"This week saw US Treasury yields rise to more than 4.6 per cent, the highest in 16 years as the Federal Reserve is expected to keep its benchmark interest rates higher for a protracted period.
"Investors will continue to assess the incoming data points, and concerns over highly restrictive US monetary policy stance will persistently dictate the market sentiments,” he told Bernama.
Meanwhile, SPI Asset Management managing director Stephen Innes opined that the ringgit strengthened today as the US yields adjusted lower to the weaker-than-expected US economic data.
In addition, signs of economic life in China also are helping Asia foreign exchange (forex) recovery as the country’s current economic data has shown a gradual improvement from an extended trough.
"On the broader forex markets, some month-end adjustments have traders reducing US dollar exposure ahead of the US Personal Consumption Expenditures (PCE) inflation report later today, which will likely influence the dollar direction next week,” he said.
The ringgit was traded lower versus a basket of major currencies except for the Japanese yen, against which it went up to 3.1482/1511 from 3.1534/1570 at Wednesday’s close.
It declined against the euro to 4.9802/9845 from 4.9690/9743 on Wednesday and depreciated vis-a-vis the British pound to 5.7522/7571 from 5.7167/7228.
Meanwhile, the local note was also traded lower against other Asian currencies.
It weakened versus the Thai baht to 12.8808/8964 from 12.8759/8949 on Wednesday and edged down against the Indonesian rupiah to 303.5/303.9 from 303.1/303.6 previously.
It was easier against the Philippine peso at 8.29/8.30 compared with Wednesday’s closing of 8.26/8.28 and slipped vis-a-vis the Singapore dollar to 3.4457/4489 from 3.4334/4373 previously. — Bernama