KUALA LUMPUR: The ringgit has rebounded from Monday’s losses to end higher against the US dollar and Asean currencies, and was mostly firmer against other major currencies yesterday.
At 6pm, the local note appreciated to 4.1380/1430 against the greenback from 4.1465/1500 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors were closely monitoring the US purchasing managers’ index data for June, with market expectations of improvement from May’s readings.
“Beyond that, investors remain focused on the US Federal Reserve’s (Fed) hawkish stance and the possibility of further interest rate hikes,” he told Bernama.
SPI Asset Management managing partner Stephen Innes said the local note remains resilient, strengthening modestly despite risk-off sentiment weighing on global markets amid concerns surrounding the artificial intelligence-driven trade.
“The market is entering a wait-and-see phase as investors assess whether this week’s US personal consumption expenditures inflation report will validate the Fed’s policy direction or indicate that much of the US dollar’s strength has already been priced in,” he told Bernama.
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