KUALA LUMPUR: The ringgit continued to strengthen against the US dollar on Tuesday, revisiting the 4.63-level last seen in January this year on the back of rising optimism of US interest rate cut and domestic growth prospects.

At 8 am, the ringgit stood at 4.6330/6400 against the greenback from Monday's close of 4.6350/6375.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local currency demonstrated a positive trend as the US rate cut expectation gains momentum.

"The ringgit's positive trend has led to prospects for lower interest rate differentials between the Fed fund rate (5.50 per cent) and the overnight policy rate (3.00 per cent) which currently stood at 2.50 per cent," he told Bernama.