Will the ringgit continue its upward trend against the US dollar?

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The Ringgit May Maintain Its Appreciating Bias Amidst US Dollar Weakness

The Malaysian ringgit opened stronger against the US dollar on September 9, extending previous gains. This appreciation is linked to a weakening US dollar, driven by increasing market expectations of potential interest rate cuts by the US Federal Reserve following softer-than-expected US jobs data. The local currency was trading at 4.2070/2275 against the dollar at 8 am, an improvement from its previous day's close of 4.2165/2205.
Factors Influencing the US Dollar

The US Dollar Index (DXY) has experienced a decline as financial markets are now factoring in a possible Federal Reserve rate cut in the upcoming week. This sentiment is largely a response to recent US employment figures, which have indicated a weakening labour market. Economists are closely monitoring upcoming data, such as the Quarterly Census of Employment and Wages, for further signs of potential downward revisions in job growth. The prevailing view is that the US labour market is showing signs of weakness, and the Federal Reserve may be perceived as being slow to implement interest rate reductions.
Projected Ringgit Performance

Forecasting the ringgit's future trajectory, analysts suggest it is likely to sustain its appreciating bias. The currency is expected to trade within a range of approximately 4.21 to 4.22 per US dollar in the near term. This outlook is contingent on the continued weakness of the US dollar and the market's interpretation of the Federal Reserve's monetary policy stance.
Ringgit Performance Against Other Currencies

While showing strength against the US dollar, the ringgit's performance against other major global currencies was mixed in early trading. It experienced a slight depreciation against the Japanese yen, the British pound, and the Euro. However, the ringgit generally traded firmer against several Asean currencies, including the Indonesian rupiah and the Singapore dollar, indicating varied regional currency movements.

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Will the ringgit continue its upward trend against the US dollar?

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