Rising Brent crude prices add to inflationary pressures as markets await the Federal Open Market Committee and Bank of Japan rate decisions, says analyst.
This fluctuation occurred amid rising Brent crude prices, as markets await the upcoming Federal Open Market Committee (FOMC) and Bank of Japan (BOJ) meetings, said an analyst.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Brent crude oil prices are currently hovering at around US$107 (RM435.30) per barrel, adding to inflationary pressures as markets brace for the upcoming FOMC and BOJ interest rate decisions.
“Inflationary bias would solidify the rate hike thesis this week. Following this, Asian currencies including the ringgit will remain guarded in the near-term,” he told Bernama.
At 6pm, the local currency depreciated to 4.0735/4.0770 against the greenback from last Friday’s close of 4.0685/4.0725.
At the close, the ringgit strengthened against the euro to 4.7008/4.7049 from last Friday’s 4.7178/4.7225, appreciated against the yen to 2.6355/2.6380 from 2.6400/2.6428, and inched up vis-a-vis the British pound to 5.4931/5.4978 from 5.4961/5.5015 previously.
Against its Asean peers, the ringgit firmed against the Singapore dollar to 3.2055/3.2085 from 3.2091/3.2125 and advanced against the Thai baht to 12.2445/12.2598 from 12.3072/12.3241.
The local currency also rose against the Indonesian rupiah to 230.5/230.8 from 231.0/231.3 last week, and ticked up vis-a-vis the Philippine peso to 6.48/6.49 from 6.49/6.50 previously. - FMT
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