Selangor Journal

Ringgit falls versus US dollar on Fed’s stance to raise interest rates

KUALA LUMPUR, June 30 — The ringgit ended lower versus the US dollar for the second consecutive day today as the hawkish stance by the United States (US) Federal Reserve (Fed) to keep raising interest rates boosted the greenback, said an analyst.

At 6pm, the local currency fell against the greenback to 4.4075/4090 from Wednesday’s close of 4.3980/4010.

The analyst said Fed chair Jerome Powell‘s statement during the European Central Bank panel session indicated that the US economy was in strong shape and well-positioned to withstand the impact from the tighter monetary policy.

“The US dollar’s uptrend will continue following Powell’s statement that the central bank will use all the tools at its disposal to maintain price stability in the economy and overcome the rising inflation.

“From the technical point of view, as the US dollar has managed to break again above 4.4070 versus the ringgit, it is now likely to move up to 4.4250 in the near term,” he added.

Back home, the ringgit traded mostly lower against a basket of major currencies.

The ringgit was marginally lower against the British pound at 5.3485/3503 against Wednesday’s close of 5.3480/3516, weakened versus the Japanese yen to 3.2344/2357 from 3.2217/2242 and depreciated vis-à-vis the Singapore dollar to 3.1670/1685 from 3.1645/1671 previously.

It, however, appreciated against the euro to 4.5961/5977 from 4.6227/6259 yesterday.

— Bernama

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Editor Selangor Journal