The Malaysian ringgit advanced today, snapping its three-day decline, as Forex market participants expect that the European Central Bank will cut its interest rates at today’s meeting, and this may increase capital inflows into emerging markets.
The ECB will announce its decision at 11:45 GMT today, and it is expected that the central bank will lower borrowing costs, putting some of them into the negative territory. Such action would increase liquidity, spurring investors to buy higher-yielding assets of emerging markets. Such view was positive for Asian currencies, including the ringgit.
USD/MYR declined from 3.2393 to 3.2288 as of 11:06 GMT today.
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