KUALA LUMPUR, Nov 3 — The ringgit ended at a fresh all-time low against the US dollar on Thursday due to weak sentiment amid the strengthening greenback, analysts said.
At 6pm, the local note fell to 4.7425/7460 versus the US dollar from 4.7360/7400 at Wednesday’s close.
SPI Asset Management managing director Stephen Innes said the ringgit was under pressure for most of the trading session after the US Federal Reserve (Fed) pushed back on the prospect of a pivot.
At a press conference on Wednesday, Fed chair Jerome Powell hinted at the stance the US central bank would adopt in the future.
Powell said he still did not see elements that would warrant a pause in the interest rate increase but that more concrete decisions would be taken at the next meeting in December.
On the Overnight Policy Rate (OPR) hike by Bank Negara Malaysia (BNM), Innes said the central bank had no choice as it had to react to building inflation pressures.
“Hence, the hike was expected and is likely to change the tide for the ringgit in the longer term,” he told Bernama.
BNM raised the OPR by 25 basis points to 2.75 per cent, the fourth consecutive hike since May this year, as its Monetary Policy Committee decided to further adjust the degree of monetary accommodation.
However, the ringgit was traded higher against a basket of major currencies.
The local note appreciated against the Singapore dollar to 3.3353/3383 from 3.3551/3584 at Wednesday’s close and increased vis-à-vis the Japanese yen to 3.1992/2018 from 3.2185/2214.
It also surged versus the British pound to 5.3372/3411 from 5.4445/4491 and strengthened against the euro to 4.6258/6292 from 4.6910/6950 previously.
— Bernama
