Kuala Lumpur: The ringgit appreciated further against the US dollar today amid fears on US tariff hikes and the expectation that the US Federal Reserve (Fed) would maintain interest rates later this year, said an analyst. At 6 pm, the ringgit advanced to 4.4200/4260 against the greenback from Tuesday’s close of 4.4400/4495.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that while concerns over tariff hikes by US President Donald Trump’s administration and the subsequent retaliation by affected countries persist, the recent decline in US job openings in December provides hope that the Fed will adhere to its plan to reduce interest rates later this year. Dr. Mohd Afzanizam suggested that the attractive level of the ringgit, due to its oversold condition from a technical perspective, might have enticed traders to purchase the currency. However, he predicted that currency markets would remain cautious in the near term.

Meanwhile, the ringgit was traded lower against other major currencies. It fell against the Japanese yen to 2.8930/8972 from 2.8581/8645, eased against the euro to 4.5990/6053 from 4.5905/6003, and slipped against the British pound to 5.5321/5396 from 5.5167/5285.

The local note showed mixed performance against ASEAN currencies. It was slightly lower against the Singapore dollar to 3.2746/2792 from 3.2741/2813 and declined against the Thai baht to 13.1602/1844 from 13.1241/1580. It showed little change against the Indonesian rupiah to 271.2/271.8 from 271.5/272.2 and remained flat against the Philippine peso at Tuesday’s close of 7.61/7.63.