Kuala lumpur: The ringgit extended its gains to open higher against the US dollar today, as investor sentiment on risk assets rebounded amid talk of a possible United States (US) interest rate cut, an economist said. At 8 am, the local note climbed to 4.2260/2395 against the greenback from yesterday’s close of 4.2350/2385.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US dollar slipped further as market participants continued to digest last Friday’s weak labour market data, which bolstered the odds of a rate cut. He indicated that emerging market currencies against the US dollar appear to be in a favorable position, as the Federal Reserve seems likely to cut its policy rate, potentially at an accelerated pace, to assure markets of its proactive stance. He projected that the September Federal Open Market Committee (FOMC) meeting is likely to see a 25-basis-point rate cut.

Mohd Afzanizam further elaborated that the ringgit is anticipated to fluctuate within a range of RM4.22 to RM4.23 against the US dollar, buoyed by the current positive sentiment. Additionally, in early trade, the ringgit showed a mostly higher performance against other major currencies.

The ringgit experienced a minor setback against the Japanese yen, weakening to 2.8795/8889 from 2.8652/8677 on Monday. However, it strengthened against the British pound to 5.6197/6377 from 5.6296/6342 and edged higher against the euro at 4.8954/9110 from 4.8978/9018.

Regionally, the local unit also performed well, rising against the Singapore dollar to 3.2841/2949 from Monday’s close of 3.2878/2908. It did, however, slip against the Thai baht to 13.0747/1229 from 13.0452/0616. The ringgit appreciated against the Philippine peso at 7.36/7.39 from 7.38/7.39 yesterday and firmed against the Indonesian rupiah to 257.6/258.5 from 258.2/258.5.