Kuala lumpur: The ringgit continued to strengthen against the US dollar as expectations of a US interest rate cut in December build, putting pressure on the greenback, an analyst said. At 8 am, the ringgit appreciated to 4.1250/1365 against the US dollar compared with yesterday's close of 4.1300/1345.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US dollar Index (DXY) had dropped below 100 points to 99.809, as the latest US data came in below estimates. The two- and 10-year US Treasury yields eased three basis points each to close at 3.43 per cent and 4.01 per cent respectively.

Mohd Afzanizam highlighted that US retail sales in September rose 0.2 per cent higher month-on-month, which was well below the consensus estimate of 0.6 per cent. He also pointed out that the Conference Board Consumer Confidence Index fell more than expected to 88.7 points in November against street estimates of 93.5 points, as American households remain concerned about the cost of living amid higher import tariffs.

He further added that the ringgit is expected to chart higher in the region of RM4.12 to RM4.13, following increased bets on a US rate cut next month. At the opening, the ringgit was traded mostly lower against a basket of major currencies.

The ringgit firmed against the yen to 2.6408/6485 from 2.6420/6451 but weakened against the euro at 4.7706/7839 from 4.7635/7687 at yesterday's close, and depreciated against the British pound to 5.4285/4436 from 5.4235/4294. However, it traded higher against ASEAN currencies, rising against the Philippine peso to 7.00/7.02, improving against the Singapore dollar to 3.1684/1775, strengthening against the Thai baht to 12.7717/8184, and climbing against the Indonesian rupiah to 247.6/248.4.