THE ringgit continued to rally strongly yesterday and is expected to be on a strengthening mode ahead of the central bank’s monetary policy decision.
Market watchers are convinced that the monetary policy committee will finally hike borrowing costs through the Overnight Policy Rate, which is the key benchmark.
The ringgit was quoted at 3.2035/2055 at 5pm yesterday compared with 3.2060/2090 on Tuesday. It was traded at 3.2050/2080 yesterday morning.
According to data compiled by Bloomberg, the ringgit strengthened 1.7 per cent during the last three months and 0.1 per cent yesterday.
The highest quoted was at 3.1937 on June 9.
Prime Minister Datuk Seri Najib Razak, who is also finance minister, tweeted yesterday about the strong ringgit and the economy’s growth prospects.
“Our ringgit is at its strongest since 2012. God willing, Malaysia’s growth will remain anchored by strong domestic demand.”
According to AmBank group, the greenback was weaker overnight against most currencies, although the moves were not uniform.
“The US dollar remains a victim of the search for yield, with the relatively mixed United States economic data not providing much direction.”