The forex markets are throwing surprises in October, as Malaysia’s local currency, the ringgit, outperformed the US dollar on Monday. The decline in the US dollar comes as traders hold weak sentiments, reassessing their stance on the Fed’s interest rate cuts. An economist noted that forex traders possibly believe the Federal Reserve could take more time to reduce interest rates again.
Also Read: BRICS: India Makes Major Announcement On U.S. Dollar Usage
This is adding pressure on the US dollar, strengthening local currencies in the charts this month. The Malaysian ringgit stood at 4.2150/2240 against the US dollar on Monday as the currency marginally traded higher. The DXY index, which tracks the performance of the US dollar, shows the currency dipping into the 102.4 price range. The USD traded a bit higher last month at around 102.75.
Also Read: UAE Slashes VAT on Crypto Transfers – Explore What It Means for You
Malaysia’s Ringgit Beats the US Dollar & Other Local Currencies
Malaysia’s Ringgit outpaced the US dollar and beat other local Asian currencies in the forex markets. The Ringgit also fared slightly higher against the Euro on Friday’s closing bell at 4.6239/6337. Coming to the British pound, the Ringgit ended at 5.5309/5427 from 5.5505/5617.
Also Read: Shiba Inu: AI Sets SHIB Price For 15 October 2024
In addition, it beat the Japanese yen at 2.8329/8391 from the 2.8779/8839 level previously. The Ringgit also ended higher against the Thai baht at 12.6406/6797 from 12.7549/7861. It is now the only currency briefly dominating the forex markets against the US dollar, Euro, and British Pound.
Also Read: Top 3 Cryptocurrencies To Watch This Week
However, the ringgit increased against the Singapore dollar at 3.2301/2373 from 3.2489/2557. It also traded flat against the Indonesian rupiah at 272.1/272.9 since last Friday. Its price remained unchanged against the Philippine peso at 7.49/7.51.
If the ringgit maintains its momentum with the US dollar and Euro, it could surge much higher this month. In the next few days, we will decide on the prospects of the local Malaysian currency.