The Ringgit Still Has No Direction, How Long Will It Go?

<p>&nbsp;Today, the Malaysian Ringgit (RM) remained open lower against the US dollar as the US dollar index (DXY) rose by 0.1% to 104.153. Traders are already anticipating interest rate cuts by the European Central Bank which will also give support to the US dollar again.</p><p><br /></p><p>According to the Chief Economist of Bank Muamalat Malaysia Bhd, Afzanizam Rashid said the bond market will continue to rise guided by the weakening labor market.</p><p><br /></p><p>He also said that the US 10-year treasury yield decreased by six basis points to 4.10% and the UK 10-year yield decreased by eight basis points to 3.94%. This shows that the Federal Reserve (Fed) is bullish on the bond market in anticipation of weaker global growth in 2024.</p><p><br /></p><p><br /></p><p>Due to the US dollar index continuing to remain positive, the ringgit is expected to hover around RM4.66 to RM4.68 today.</p><p><br /></p><p>In addition, the ringgit is seen to be stronger than other major world currencies except the US dollar. It stands at 4.6705 compared to yesterday's close of 4.6665.</p><p><br /></p><p>Compared to the euro, the ringgit rose to 5.0301 and the British pound to 5.8666. As for the Japanese yen, it fell to 3.3067 compared to before.</p>