Ringgit ends mixed against major currencies

 The greenback continued to be lifted as investors anticipated further monetary tightening by the US Federal Reserve, says analyst.

KUALA LUMPUR:

The ringgit ended mostly higher against major currencies but eased against the US dollar on Friday as the greenback continued its upward momentum on a hawkish US interest rate outlook.

The market is expecting a sizeable interest rate hike by the US Federal Reserve (Fed) when the central bank meets in December.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US dollar continued to be lifted as investors anticipated further monetary tightening by the Fed at its upcoming Federal Open Market Committee meeting next month.

“Based on interest rate futures contracts, a 25 basis-point rate hike is widely anticipated, with the probability of an increase currently indicated at 111%,” he told Bernama.

Attention is now shifting towards whether the Fed will opt for a more aggressive 50-basis-point hike in a single move, potentially providing further support for the greenback, he added.

The ringgit traded mixed against a basket of major currencies.

At 6pm, the local currency depreciated to 4.0845/4.0890 against the greenback from 4.0765/4.0805 at Thursday’s close.

It strengthened against the euro to 4.5166/4.5216 from 4.5225/4.5269 at yesterday’s close, appreciated vis-a-vis the British pound to 5.4046/5.4106 from 5.4103/5.4156, but edged down against the Japanese yen to 2.5549/2.5579 from 2.5524/2.5551.

Meanwhile, the ringgit traded mostly lower against its Asean peers.

It inched down against the Singapore dollar to 3.1729/3.1769 from 3.1726/3.1760, fell vis-a-vis the Indonesian rupiah to 224.3/224.6 from 223.5/223.8 and declined against the Philippine peso to 6.41/6.42 from 6.40/6.41.

It climbed against the Thai baht to 12.0611/12.0833 from 12.0678/12.0836. - FMT