Kuala Lumpur: The ringgit retreated to close lower against the US dollar today as traders await key US inflation data that may influence the pace of Federal Reserve (Fed) interest rate cuts.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the Federal Open Market Committee (FOMC) meeting minutes show that the Fed has shifted its monetary stance towards easing.
He noted that it is a question of the degree of monetary easing which was debated among the committee members — whether it is a 25-basis point or 50-basis point cut.
“On that note, we know that the gap between the overnight policy rate (OPR) and the Federal Funds Rate (FFR) would be narrowed further going forward. Therefore, the case for a ringgit appreciation is still intact," he opined.
SPONSORED CONTENT Enjoy a taste of Malaysia, everyday with Ayam Brand™ local pastes SHAH ALAM: Fact: Every time Malaysians travel abroad, we almost immediately miss the taste of home. You don’t need to be homesick to celebrate Malaysia’s rich culinary heritage when you can savor the authentic taste of Malaysia in your own home with Ayam Brand™ cooking pastes. Read more At 6pm, the local note went down to 4.2910/4.2940 versus the greenback compared to yesterday’s close of 4.2800/4.2830.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It strengthened versus the euro to 4.6918/4.6951 from 4.6939/4.6972 at yesterday’s close but weakened against the Japanese yen to 2.8820/2.8842 from 2.8792/2.8815 previously and edged down vis-a-vis the British pound to 5.6122/5.6161 from 5.6012/5.6052.
Meanwhile, the local note performed better versus Asean currencies.
It appreciated against the Thai baht to 12.7724/12.7866 from 12.8010/12.8157 at yesterday’s close and increased vis-a-vis the Singapore dollar to 3.2811/3.2836 from 3.2822/3.2848 previously.
The ringgit also rose versus the Philippine peso to 7.48/7.50 from yesterday’s close of 7.50/7.52 and firmed against the Indonesian rupiah to 273.6/274.0 from 273.8/274.1.
* Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss.
* Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
