KUALA LUMPUR, Dec 14 — The ringgit slipped against the US dollar at the opening today, with the greenback gaining further traction as the final Federal Open Market Committee (FOMC) meeting for the year looms near, an analyst said.
At 9am, the local note fell to 4.2290/2330 against the greenback from 4.2275/2295 at Monday’s close.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar is staging gains across major currencies, which was reflected in the sharp rise in the US dollar index (DXY) that lingers at more than 96 points.
“The United Kingdom reported its first Omicron-related death, implying downside risks to growth remain clearly visible,” he told Bernama, adding that the situation further added the risk-off sentiments, leading to higher demand for the greenback.
Furthermore, he said the Bank of Canada has also announced its monetary policy review, keeping its midpoint inflation target of 2.0 per cent while remaining committed to maintaining the benchmark interest rates at a low level to support the economic recovery.
”All in all, the United States Federal Reserve really stands out in respect to monetary tightening campaign,” he further explained.
Hence, Mohd Afzanizam said the US dollar would be highly in demand and by extension, the ringgit could stay weak at around RM4.22 to RM4.23 today.
At the opening bell, the ringgit was traded mixed against other major currencies.
The local note appreciated against the Singapore dollar to 3.0900/0932 from 3.0907/0924 at Monday’s close and rose versus the British pound to 5.5844/5897 from 5.5993/6020.
However, it slipped against the euro to 4.7690/7736 from 4.7640/7662 and eased versus the Japanese yen to 3.7214/7252 from 3.7178/7199 previously.
— Bernama
