KUALA LUMPUR, Jan 27 — The ringgit ended lower against the US dollar today as investors take refuge from the volatility in the currency market.
At 6pm, the local note stood at 4.1935/1980 against the greenback from yesterday’s close at 4.1890/1915.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that the US Federal Open Market Committee’s statement last night was the main driver of foreign exchange (forex) volatility as the Federal Reserve is expected to raise the interest rate in March.
“Similarly, their bloated balance sheet size is expected to be reduced beginning March. The impression is that bond yields would rise and could exacerbate the risk-off mode.
“As such, the demand for safe-haven currencies such as the US dollar would be well supported as forex players are seeking refuge against volatility,” he added.
Meanwhile, the local note was traded higher against a basket of other major currencies.
The ringgit appreciated versus the euro to 4.6946/6997 from 4.7281/7309 yesterday, and advanced against the British pound to 5.6306/6367 against 5.6567/6610 yesterday.
The domestic unit also strengthened against the Japanese yen to 3.6462/6501 from 3.6710/6735 yesterday and rose against the Singapore dollar to 3.1040/1076 from 3.1152/1173 previously. — Bernama
