By Zufazlin Baharuddin
KUALA LUMPUR, Dec 11 (Bernama) -- The ringgit bounced to the 4.10 level against the US dollar at Thursday’s close, hitting a new high in four years and six months after the US Federal Reserve (Fed) cut interest rates for the third time this year, which weighed on the greenback.
At 6 pm, the ringgit hopped to 4.1040/1105 versus the greenback compared with Wednesday’s close of 4.1155/1195.
The local currency beat the previous high recorded on June 11, 2021, when it closed at 4.1070 against the greenback.
The US Federal Open Market Committee (FOMC) yesterday cut interest rates to between 3.5 and 3.75 per cent, marking the third reduction this year from 4.25-4.50 per cent in December last year.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the local currency continued to perform well against the US dollar after the FOMC meeting concluded yesterday.
“The latest FOMC decision was not unanimous, with two members voting for no change, while one member opted for a 50 basis points cut. This reflects the degree of policy uncertainty going into 2026.
“Based on the latest projection, the Fed funds rate is expected to be reduced by 25 basis points each in 2026 and 2027,” he told Bernama.
At the close, the ringgit trended lower against major currencies.
It dipped versus the British pound to 5.4879/4966 from 5.4781/4835 at Wednesday’s close, weakened against the euro to 4.8025/8101 from 4.7884/7930, and edged down vis-à-vis the Japanese yen to 2.6333/6375 from 2.6240/6267.
However, the local note traded higher against ASEAN currencies.
It climbed up versus the Singapore dollar to 3.1711/1763 from 3.1748/1781 at Wednesday’s close and strengthened against the Indonesian rupiah to 246.1/246.6 from 246.5/246.9 previously.
The ringgit also inched up vis-à-vis the Thai baht to 12.9219/9505 from 12.9243/9422 and was flat against the Philippine peso at 6.95/6.97 from 6.95/6.96 yesterday.
-- BERNAMA
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