Investors anticipate higher US interest rates

 

KUALA LUMPUR: The ringgit concluded the final session for the week on a weaker note against the US dollar, as the greenback strengthened against other currencies over the past 24 hours.

SPI Asset Management managing partner Stephen Innes said many investors believe the US interest rates might go even higher.

“The increase in the US consumer prices index (CPI) made it more likely that the Federal Reserve (Fed) will raise interest rates again this year.

“As a result, the US dollar has become stronger against other currencies in the last 24 hours,” he told Bernama.

Nevertheless, the ringgit was traded mostly higher versus a basket of major currencies.

At 6pm, the local currency fell to 4.7260/4.7305 against the greenback from yesterday’s close of 4.7090/4.7140.

It appreciated vis-à-vis the British pound to 5.7615/5.7670 from 5.7925/5.7987 at yesterday’s close and went up against the euro to 4.9760/4.9807 from 5.0005/5.0058, previously, but it declined against the yen to 3.1582/3.1615 from 3.1572/3.1614 at yesterday’s close.

At the same time, the local currency was traded mixed against other Asian currencies.

It appreciated against the Singapore dollar to 3.4522/3.4559 from 3.4556/3.4598 yesterday and went up against the Thai baht to 12.9810/12.9995 from 12.9997/13.0207 previously.

It fell against the Indonesian rupiah at 301.3/301.7 from 299.9/300.4 at yesterday’s close and went down against the Philippine peso to 8.32/8.33 versus 8.31/8.32 previously. - FMT