Ringgit ends lower against greenback amid concerns of Fed rate hike

KUALA LUMPUR – The ringgit ended the week lower against the US dollar today amid growing concerns about a rate hike in the July US Federal Reserve policy meeting, an economist said.

At 6pm, the local note slipped to 4.6655/6675 against the greenback compared with 4.6580/6630 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the latest ADP Nonfarm Employment Change data for June, which came in higher than expected, indicated that the US Fed is not about to loosen its grip on a hawkish stand.

“Hence, nonfarm payrolls data print due later today will be closely monitored by the market players,” he said.

The ringgit traded lower against a basket of major currencies at today’s close.

It declined vis-a-vis the euro to 5.0765/0787 from 5.0600/0654 at yesterday’s close, slipped against the Japanese yen to 3.2601/2617 from 3.2323/2359, and weakened against the British pound to 5.9466/9492 from 5.9310/9374 at yesterday’s close.

The local note traded mixed against other Asean currencies.

The ringgit was down versus the Singapore dollar at 3.4511/4528 from 3.4458/4497 and flat against the Philippine peso at 8.39/8.39.

However, the ringgit rose against the Indonesian rupiah to 308.0/308.3 from 309.3/309.8 yesterday and strengthened against the Thai baht to 13.2471/2588 from 13.2881/3088.  – Bernama, July 7, 2023