KUALA LUMPUR: The ringgit ended higher against the US dollar today in tandem with most emerging Asian currencies, as the greenback softened ahead of the Federal Open Market Committee (FOMC) meeting which begins tomorrow, dealers said.
At 6pm, the local currency stood at 4.0760/0800 against the greenback compared with Friday’s close of 4.0890/0940.
A dealer said weaker United States (US) economic data released on Friday triggered expectations that the FOMC meeting could strike a dovish stance on US interest rates.
Figures released on Friday showed US manufacturing output fell by 0.4% in February, weakening for the second consecutive month, while factory activity in New York state was softer than expected with an index reading of 3.7, hitting a near two-year low this month.
Meanwhile, FXTM research analyst Lukman Otunuga said the strengthened ringgit — in spite of the decline in oil prices for three consecutive days — pointed to the weaker-dollar theme in play.
“The greenback’s decline suggests that the markets are pricing in an unchanged US interest rate, given that the Fed has signalled its dovish stance at the end of January.
“In the absence of other catalysts for risk sentiment, the ringgit may also find further support on Friday should February’s domestic inflation data show consumer price gains, which may remove the ‘noise’ from January’s deflation,“ he told Bernama.
The ringgit was also traded higher against other major currencies.
It increased against the Japanese yen to 3.6556/6602 from 3.6623/6671 and rose versus the euro to 4.6263/6312 from 4.6287/6360 last Friday.
The ringgit also appreciated versus the British pound to 5.4015/4084 from 5.4220/4307 and advanced against the Singapore dollar to 3.0152/0184 from 3.0197/0245 previously. — Bernama
