KUALA LUMPUR, June 16 — The ringgit extended yesterday’s gains to close higher against the US dollar today as more investors returned to emerging currencies after the US Federal Reserve (Fed) announced a 75 basis point increase in the interest rate at its Federal Open Market Committee (FOMC) meeting last night, a dealer said.
At 6pm, the local currency appreciated against the greenback to 4.4020/4045 from Wednesday’s close of 4.4120/4150.
A dealer said the markets were surprised by the Fed’s larger-than-expected 0.75 per cent interest rate hike to a range of 1.50-1.75 per cent as persistently high inflation compelled the central bank to deliver its biggest hike at a single meeting since 1994.
On the other hand, he said oil price recovered on Thursday from a steep drop in the previous session, driven by tight oil supply and peak summer consumption as the US rate hike sparked slower economic growth and less fuel demand.
Meanwhile, the ringgit was traded mixed against a basket of major currencies.
The local note declined against the British pound to 5.3396/3427 from Wednesday’s close of 5.3323/3360 and strengthened versus the Singapore dollar to 3.1687/1710 from 3.1732/1758 yesterday.
It depreciated against the Japanese yen to 3.3128/3149 from 3.2815/2840 on Wednesday but went up vis-à-vis the euro to 4.5798/5824 from 4.6277/6309.
— Bernama
