KUALA LUMPUR, April 25 — The ringgit, along with other major currencies, continued to be under pressure after expectations of a 50-basis points (bps) rate hike by the US Federal Reserve (Fed) supported the US dollar.
At 6pm, the local note eased further to a near two-year low at 4.3560/3580 versus the greenback from 4.3230/3270 at the close last Friday.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the currency market will continue to be fixated by the Fed meeting, scheduled for next week.
‘’The ringgit has surpassed its resistance level of 4.34 and the next resistance level will be around 4.36 level. The risk aversion sentiments are so dominant at the moment.
‘’Even the euro tumbled against the greenback although the incumbent French President Emmanuel Macron won the Presidential election,’’ he told Bernama.
The US Federal Open Market Committee meeting will be held on May 3-4.
Comments by both Fed chairman Jerome Powell and analysts have boosted the prospects of sharper interest rate hikes starting next month.
Meanwhile, the ringgit was traded mostly lower against a basket of major currencies.
The local note slipped versus the Japanese yen to 3.3968/3986 from Friday’s close of 3.3652/3686 and eased against the euro to 4.6740/6761 from 4.6710/6753.
It depreciated against the Singapore dollar to 3.1698/1718 from Friday’s close of 3.1633/1667 but increased vis-a-vis the British pound to 5.5426/5451 from 5.5641/5693 previously.
— Bernama
