RM revisit RM4.19 against USD, expected to be RM4.07

The ringgit revisited the RM4.19 level against the US dollar today, with immediate support expected at RM4.07, driven by Malaysia’s lower-than-forecasted CPI increase of 1.9 per cent and a 50 basis point interest rate cut by the US Federal Reserve.

At 8 am, the local note traded at 4.1995/2055 versus the greenback from Monday’s close of 4.2000/2060.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit should remain well supported today due to the latest CPI print released yesterday, which came in at 1.9 per cent, suggesting that the inflation rate has stabilised.

“The inflation rate has been stabilised at a time when economic activities in Malaysia continue to grow at a healthy clip.

“This would incentivise the BNM to keep the current monetary policy stance, which is deemed supportive of growth,” he said, Bernama reported.

Mohd Afzanizam said this would be positive for the ringgit as the gap between the US interest rates and Malaysia would narrow going forward.

Meanwhile, the ringgit traded easier against a basket of major currencies.