KUALA LUMPUR, Nov 1 — The ringgit ended lower against the greenback on Wednesday as investors awaited the US Federal Reserve’s (Fed) decision later tonight on the country’s interest rate.
At 6pm, the ringgit fell to 4.7695/7735 against the greenback from yesterday’s close of 4.7615/7655.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) continued to gain strength today as market participants awaited the Fed’s decision tonight.
“While we believe the Fed might keep the rate steady, (a potential) hawkish statement would support the US dollar,” he told Bernama.
Afzanizam said the Bank of Japan’s decision to lift the upper band of its yield curve control to one per cent suggested that it continues to remain dovish in rolling back excessive monetary policy easing.
“On that note, the ringgit could stay weak in the near term,” he added.
At the close, the ringgit traded higher versus a basket of major currencies.
It rose against the Japanese yen to 3.1540/1569 from 3.1588/1616 at the close on Tuesday, strengthened versus the euro to 5.0313/0356 from 5.0729/0772 and gained against the British pound to 5.7897/7946 from 5.8014/8063.
The ringgit also traded mostly higher against other Asean currencies.
It appreciated against the Singapore dollar to 3.4786/4820 from 3.4867/4902 at the close on Tuesday, gained vis-à-vis the Indonesian rupiah to 299.2/299.6 from 299.7/300.1 and rose against the Thai baht to 13.1645/1803 from 13.2371/2544 previously.
However, the ringgit was unchanged against the Philippine peso at 8.39/8.40.
— Bernama
