KUALA LUMPUR, April 28 — The ringgit closed slightly lower against the greenback today as investors reduced the US dollar shorts ahead of the United States (US) Federal Open Market Committee (FOMC) meeting outcome and rising US Treasury yields, said an analyst.
At 6pm, the local currency stood at 4.1000/1050 against the greenback from Tuesday’s close of 4.0960/0990.
The analyst said yields were up again as market players await updates from the US government and central bank, with the US President Joe Biden set to deliver the first address to Congress today.
However, OANDA senior market analyst for Asia Pacific, Jeffrey Halley, said market players anticipated that there would be no changes in FOMC’s guidance, which could lead to the strengthening of ringgit for the rest of the week.
“As for today, the easing of ringgit was cushioned by firmer crude oil prices and March 2021’s strong trade performance data which was released today,” he told Bernama.
Malaysia’s trade performance continued to be on an upward trajectory in March, registering the highest monthly value for trade, exports and imports, with total trade expanding by 25.6 per cent year-on-year to RM185.74 billion.
“Looking ahead, Malaysian exports showed a strong recovery in March 2021, led by electronics. That should keep the recent ringgit rally on track despite the caution ahead of tonight’s FOMC,” he said.
At the time of writing, the benchmark Brent crude oil price rose 0.17 per cent to US$66.53 per barrel.
Meanwhile, the ringgit was traded mostly lower against other major currencies, with the exception of the Japanese yen where it rose to 3.7646/7695 from 3.7824/7856 on Tuesday.
The local note depreciated against the Singapore dollar to 3.0911/0955 from 3.0883/0908 yesterday, narrowed versus the euro to 4.9467/9539 from 4.9410/9463, and eased against the British pound to 5.6941/7018 from 5.6865/6923 previously.
The market will be closed tomorrow for the Nuzul Al-Quran holiday and will resume operations on Friday.
— Bernama
