The ringgit finished the day off best at 4.1050/1100 against the US dollar. — Reuters pic

KUALA LUMPUR, Nov 23 ― The ringgit continued its upward momentum today to hit a 14th-month high of 4.0970/1000, in early trade, but finished the day off best at 4.1050/1100 against the US dollar, dealers said.

MIDF Amanah Investment Bank Bhd Chief Economist Dr Kamaruddin Mohd Nor said the ringgit strengthened by about 8.4 per cent, year-to-date, and remained bullish against the US dollar.

He said the ringgit remained buoyant on expectation that Bank Negara Malaysia would increase the overnight policy rate in the first quarter 2018 coupled with renewed interest for bonds as well as firm crude oil prices.

The ringgit, which opened at 4.0970/1000 against US dollar this morning, broke fresh resistant level to set a new milestone as it surpassed the 4.1400 level expected this week, he told Bernama.

“The market is keenly awaiting October’s Consumer Price Index data to be announced tomorrow, which was expected to be above four per cent.

“This will determine the direction for interest rates,” he added.

Meanwhile, FXTM Research Analyst Lukman Otunuga said the greenback weakened against a basket of currencies after outgoing US Federal Reserve (Fed) Chair Janet Yellen’s cautious remarks which reinforced market expectations that the Fed would raise interest rates gradually.

The US dollar found itself vulnerable to heavy losses after the minutes from the previous Federal Open Market Committee meeting revealed that policymakers were concerned over the inflation outlook, he said.

Against a basket of major currencies, the ringgit was traded lower.

The local currency fell against the Singapore dollar to 3.0486/0537 from 3.0393/0417 yesterday and weakened against the euro to 4.8607/8679 from 4.8317/8357 on Wednesday.

It decreased against the British pound to 5.4621/4692 from 5.4453/4505 on Wednesday and reduced vis-a-vis the yen to 3.6892/6944 from 3.6667/6697 yesterday. ― Bernama