KUALA LUMPUR, Oct 31 — The ringgit ended higher against the US dollar for the third day in a row after the US Federal Reserve cut interest rates for the third time this year, said a dealer.
At 6pm, the ringgit was quoted at 4.1775/1795 against the greenback from 4.1785/1815 at the close yesterday.
A dealer said the 25-basis point interest rate cut by the US central bank was in line with market expectations as the world’s largest economy was looking to sustain its economy.
Separately, Maybank in a note today said against the backdrop of weaker global growth, even after the Fed’s easing lately and pause, the market should on average still see the US dollar supported against the regional currencies until the first quarter of next year but downside pressures on the US dollar/ringgit would intensify as the greenback softened in 2020.
“Fundamentally, we think the picture for risk assets including emerging market currencies such as ringgit remains quite bright if global growth sees some sustained green shoots amid extended easy monetary policy, provided markets and policymakers manage to navigate near-term event risks,” it added.
The bank expects the ringgit to end at around 4.15 against the US dollar in 2019.
Meanwhile, the local note traded mixed against other major currencies today.
The ringgit strengthened against the Singapore dollar to 3.0670/0689 from 3.0672/0699 yesterday and improved against the yen to 3.7570/8599 from 3.8381/8419 yesterday.
However, it fell against the British pound to 5.4044/4087 from 5.3840/3895 and declined against the euro to 4.6629/6668 from 4.6431/6473. — Bernama
