KUALA LUMPUR: The ringgit closed higher against the US dollar yesterday, supported by a weaker greenback following downbeat US economic data, as investors shifted into risk-on mode.
At 6pm, the local note stood at 4.2245/2295 against the greenback, strengthening from Wednesday’s close of 4.2435/2490.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said traders and investors were weighing the prospects of an economic slowdown and the risk of higher inflation stemming from recent tariff shocks.
“This has led to a policy dilemma among the US Federal Open Market Committee members, and hence the scope for interest rate cuts is rather limited,” he told Bernama, adding that the next key data point would be the US non-farm payroll or P report due today.