KUALA LUMPUR, Oct 11 — The ringgit rose against the US dollar at the close amid indications from the US Federal Reserve (US Fed) that there would be no interest rate hikes for the year.
At 6.01pm, the local note rose to 4.7145/7180 against the greenback from Tuesday’s close of 4.7255/7310.
SPI Asset Management managing partner Stephen Innes said that even if the US Fed decides not to raise interest rates, there is no economic evidence suggesting they will lower interest rates soon.
“To truly weaken the US dollar, the Fed must signal a willingness to contemplate rate cuts.
“However, the ringgit gains might be replaced by concerns that the United States inflation data may remain high, potentially convincing US Fed members that a more restrictive monetary policy is still necessary,” he told Bernama.
Meanwhile, the ringgit was traded higher versus a basket of major currencies.
It appreciated vis-à-vis against the yen to 3.1711/1737 from 3.1740/1779 at Tuesday’s close, went up against the euro to 4.9983/5.0020 from 5.0095/0153 and rose against the British pound to 5.7918/7961 from 5.7982/8049.
The local note was traded mixed against other Asean currencies.
It appreciated against the Singapore dollar to 3.4587/4617 from 3.4619/4662 at Tuesday’s close and went up against the Philippine peso to 8.30/8.32 versus 8.31/8.32 previously.
It depreciated against the Thai baht to 12.9462/9615 from 12.8571/8773 and traded lower against the Indonesian rupiah at 300.2/300.6 from 300.1/300.8 at yesterday’s close.
— Bernama
