Ringgit Succeeds Through Difficult Levels, Closing 2023 Positively!

<p>&nbsp;This morning, the Malaysian Ringgit (RM) opened higher against the US dollar following the latest economic data in the United States strengthening investors' hopes for a reduction in US interest rates next year.</p><p><br /></p><p>At exactly 9am this morning, the ringgit was seen at the level of RM4.5955 compared to the dollar from yesterday's closing value of RM4.6055.</p><p><br /></p><p>According to SPI Asset Managing Director, Stephen Innes said weak economic data in the United States including a higher than expected unemployment rate and disappointing home sales data will continue to have a negative impact on the value of the US dollar.</p><p><br /></p><p>He also said that the main issue in the foreign exchange market is that investors are now pricing in a potential interest rate cut of 150 basis points which is expected to happen in March next year.</p><p><br /></p><p><br /></p><p>However, the Federal Reserve (Fed) indicated a forecast of a cut of 75 basis points starting in the second half of next year. However, the first US Non-Farm Payrolls report data in early January will give some support to market forecasts.</p><p><br /></p><p>A strong jobs report could delay interest rate cuts by the Fed. A weak report will strengthen expectations of an interest rate cut in March and lead to a significant weakening of the US dollar.</p><p><br /></p><p>Meanwhile, the local currency is seen to open higher compared to several major world currencies such as the Japanese yen, the euro and even the British pound compared to yesterday.</p><p><br /></p><p>The ringgit is also seen as strong against several other Asean currencies such as the Singapore dollar, the Indonesian rupiah, the Thai baht and the Philippine peso.</p>