The ringgit closed stronger against the US dollar
BERNAMA
08/08/2024 
KUALA LUMPUR: The ringgit bounced back and ended Thursday trading stronger against the United States (US) dollar, driven by the weakness of the developed country's currency in addition to the decline in its Treasury note yields.
At 6pm, the ringgit rose to 4.4710/4750 against the US dollar from 4.4950/5010 at yesterday's close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the ringgit continues to gain support momentum amid concerns about the US economy.
"The increase in the value of the ringgit also coincides with the fall in the US Dollar Index (DXY). In fact, the possibility of an increase in interest rates in the US will further narrow the interest rate gap between the Federal Funds Rate and the Overnight Policy Rate (Malaysia)," he said.
Meanwhile, SPI Asset Management's Managing Director Stephen Innes described the weakness of the US dollar as an indication of its attractiveness as a safe asset becoming increasingly bleak even in a scenario of continued uncertainty sentiment.
"The market sentiment also shows that if the US market continues to be uncertain, the possibility of the US Federal Reserve (Fed) implementing a reduction of up to 50 basis points is also significant which only favors the strategy of releasing US dollar holdings," he said.
At the close of trading today, the ringgit also traded mostly higher against major currencies.
The ringgit rose against the British pound to 5.6661/6712 from 5.7122/7199 and rose against the euro to 4.8859/8903 from 4.9054/9119 previously.
However, the local currency weakened against the Japanese yen to 3.0590/0619 from 3.0464/0509 yesterday.
Compared to ASEAN currencies, the ringgit traded mixed including rising against the Singapore dollar to 3.3746/3779 from 3.3853/3901 yesterday and strengthening against the Philippine peso to 7.79/7.81 from 7.81/7.83.
The ringgit however fell against the Thai baht to 12.6382/6545 from 12.5999/6230 and was lower against the Indonesian rupiah to 281.2/281.6 from 280.2/280.8.
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