Ringgit ends lower on Fed rate hike expectations

 Expectations of further interest rate hikes by the US Federal Reserve continued to support the greenback, says analyst.

KUALA LUMPUR:

The ringgit ended higher against major currencies today but weakened against the greenback as expectations of further interest rate hikes by the Federal Reserve (Fed) continued to support the US dollar.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said markets expect the Fed to raise interest rates by another 50 basis points this year, providing further support to the US dollar.

“The ringgit actually started the day stronger, reaching RM4.0640 against the US dollar in the morning.

“However, it could not maintain that strength. As the US dollar remained firm, the ringgit weakened to around RM4.0780 in the afternoon.

“Other Asian currencies also showed mixed movements, so the ringgit’s performance was not completely isolated,” he told Bernama.

At 6pm, the ringgit edged down to 4.0780/4.0825 against the greenback from yesterday’s close of 4.0730/4.0775.

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

It gained against the euro to 4.6522/4.6573 from 4.6705/4.6757 at yesterday’s close and advanced vis-à-vis the British pound to 5.4156/5.4216 from 5.4452/5.4512.

It also strengthened against the Japanese yen to 2.5836/2.5868 from 2.5958/2.5988 previously.

The local note traded mixed against its Asean peers.

It appreciated against the Singapore dollar to 3.1909/3.1947 from 3.1955/3.1993 at yesterday’s close and strengthened versus the Thai baht to 12.2599/12.2782 from 12.2847/12.3035.

However, the ringgit declined against the Indonesian rupiah to 228.8/229.2 from 227.7/228 and weakened against the Philippine peso to 6.51/6.52 from 6.49/6.50. - FMT