KUALA LUMPUR, Nov 15 — The ringgit closed higher against the US dollar today as the greenback retreated after lower-than-expected United States (US) Consumer Price Index (CPI) data reinforced expectations the US Federal Reserve (US Fed) is done hiking interest rates.
At 6pm, the ringgit rose to 4.6695/6755 against the greenback from Tuesday’s close of 4.7165/7210.
Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the ringgit went up to as high as RM4.6565 against the US dollar before settling at RM4.6695 today.
The local currency is lingering close to its immediate support level at RM4.6611.
“Beyond this point, the next support level would be at RM4.5778. We believe there is scope for further ringgit appreciation.
“However, the upcoming Federal Open Market Committee (FOMC) meeting from December 12 to December 13 will be closely monitored as markets are searching for more clues on the future path of interest rates,” he told Bernama.
Afzanizam said thus far, yields on short-dated securities such as the 3-month and 2-year US Treasuries are stubbornly higher at 5.37 per cent and 4.84 per cent, respectively, compared to 4.44 per cent for the 10-year Treasury.
“Bond markets are still not convinced that the Fed would pivot anytime soon as short-term rates always reflect central bank’s actions. Therefore, December’s FOMC would be the key event to look at to gauge 2024 US interest rates,” he added.
At the close, the ringgit was traded mostly lower versus a basket of major currencies.
It advanced against the Japanese yen to 3.1049/1091 from 3.1091/1123 at Tuesday’s close, eased against the euro to 5.0669/0734 from 5.0570/0619 previously, and fell vis-à-vis the British pound to 5.8187/8261 from 5.8032/8087.
The local currency ended mixed against other Asean currencies.
It appreciated against the Singapore dollar to 3.4615/4662 from 3.4675/4713 on Tuesday and was higher against the Philippine peso at 8.36/8.38 from 8.41/8.42 previously.
However, the ringgit weakened against the Thai baht to 13.1713/1935 from 13.0760/0946 yesterday and eased vis-à-vis the Indonesian rupiah to 300.5/301.1 from 300.4/300.9.
— Bernama
