KUALA LUMPUR — On Monday, the ringgit edged slightly stronger against the US dollar. This upward movement came despite lingering caution due to mixed signals from US Federal Reserve (Fed) officials, which left many unsure about the dollar’s immediate future.

The Ringgit’s Morning Stand

By 8 am, the ringgit had risen to 4.1435/1590 against the US dollar, marking an improvement from last Friday’s conclusion at 4.1460/1495. The Malaysian currency was broadly higher when compared to a selection of major currencies.

• Against the yen: Improved to 2.6447/6548 from 2.6453/6479.
• Against the euro: Rose to 4.7679/7858 from 4.7779/7819.
• Against the British pound: Slight dip to 5.4263/4466 from 5.4143/4188.

Perspectives from the Fed

Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, offered insights into recent Fed commentary. He pointed out the divergence in views regarding interest rate futures.

The Boston Fed president seemed hesitant about a December rate cut, attributing this stance to mixed labour market signals and possible inflation threats. In contrast, the New York Fed president hinted that there might be room for a rate reduction, highlighting the restrictive nature of the current monetary policy. This mix of opinions has left markets in a state of anticipation.

Regional Performance

The ringgit presented a mixed performance against ASEAN currencies:

• Thai baht: Declined to 12.7649/8230 from 12.7601/7759.
• Indonesian rupiah: Rose to 247.8/248.9 from 248.0/248.3.
• Philippine peso: Remained unchanged at 7.04/7.07 from 7.04/7.05.
• Singapore dollar: Held steady at 3.1695/1816, unchanged from last Friday.

Outlook for the Ringgit

Dr Afzanizam anticipates that the ringgit will hover between the RM4.14 and RM4.15 range today. Considering the prevailing conditions, this stability seems likely.

For more detailed local and international perspectives, Reuters and Bloomberg offer further insights into currency movements.

— BERNAMA