At 8am, the ringgit strengthened to 4.1230/4.1335 against the greenback from yesterday’s close of 4.1305/4.1345.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index was hovering just below the 100-point mark as expectations of a US Federal Reserve rate cut in December gained momentum.

“Market pricing for a December rate cut has surged to 85%, compared with less than 40% a week ago,” he noted, adding that the shift in expectations had already pushed US Treasury yields lower.

He said that since Nov 14, the 2-year and 10-year US Treasury yields had fallen by 17 and 14 basis points respectively, now standing at 3.45% and 4.00%.

“This downtrend should provide further support for emerging-market currencies, including the ringgit.

“Today, we expect the ringgit to remain within a narrow range of RM4.12 to RM4.13 as traders monitor upcoming US data ahead of the Federal Open Market Committee meeting,” he added.

In early trade, the ringgit was mixed against major currencies.

It firmed against the yen to 2.6379/2.6448 from 2.6417/2.6444 at Thursday’s close, but slipped against the British pound to 5.4589/5.4728 from 5.4576/5.4629 and was little changed against the euro at 4.7823/4.7944 from 4.7823/4.7869.

The local note traded higher against Asean currencies.

It rose against the Singapore dollar to 3.1794/3.1877 from 3.1817/3.1850 at yesterday’s close and strengthened against the Thai baht to 12.7904/12.8342 from 12.8097/12.8285.

It also appreciated against the Indonesian rupiah to 247.8/248.5 from 248.3/248.6 and improved against the Philippine peso to 7.01/7.03 from 7.02/7.04.