Ringgit ends lower as firmer US dollar weighs on market

The US dollar rose against major currencies after news that Donald Trump does not intend to replace the current Federal Reserve chairman.

KUALA LUMPUR:

 The ringgit closed lower on Thursday as the US dollar strengthened against other major currencies, following news that US president Donald Trump has no plans to remove the current Federal Reserve (Fed) chairman.

Bank Muamalat Malaysia Bhd’s chief economist, Afzanizam Abdul Rashid, noted that the US dollar was on firmer footing, with the US Dollar Index (DXY) rising 0.13% to 99.187 points.

In a recent interview, Trump indicated no plans to remove the current Fed chairman Jerome Powell, despite the ongoing investigation by the justice department.

“The news seems to provide some support to the greenback, as new candidates for the Fed chairmanship will be announced in a few weeks.

“The ringgit against the US dollar oscillated within a narrow range today, between RM4.048 and RM4.0578, due to cautious sentiments in the market,” Afzanizam told Bernama.

At 6pm, the local currency weakened to 4.0535/4.0595 versus the greenback from yesterday’s close of 4.0465/4.0525.

At the close, the ringgit traded lower against a basket of major currencies.

It depreciated versus the Japanese yen to 2.5594/2.5633 from 2.5488/2.5526 at yesterday’s close, weakened vis-à-vis the euro to 4.7167/4.7236 from 4.7146/4.7216 and edged down against the British pound to 5.4467/5.4548 from 5.4446/5.4526.

The local note was also easier against its Asean peers.

The ringgit slipped versus the Singapore dollar to 3.1491/3.1540 from 3.1432/3.1481, was flat vis-à-vis the Indonesian rupiah at 239.9/240.3, showed little change against the Philippine peso at 6.81/6.83 from 6.81/6.82 previously, and fell versus the Thai baht to 12.9096/12.9349 from 12.8714/12.8958. - FMT