KUALA LUMPUR, Jan 31 — The ringgit reversed its gains yesterday to end lower against the US dollar today as the US dollar index (DXY) inched higher ahead of the United States (US) interest rate decision later tonight, an economist said.
At 6pm, the ringgit eased to 4.7305/7355 against the greenback compared to Tuesday’s closing rate of 4.7255/7290.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the market consensus is that the US Federal Reserve will keep the Fed Fund Rate stable at 5.50 per cent during its first Federal Open Market Committee meeting for the year.
More importantly, market players are waiting for the latest assessment by the Fed on the state of the US economy moving forward.
“A hawkish tone would certainly help push the US dollar higher in the near term,” he told Bernama.
The ringgit also traded mostly lower against a basket of major currencies today, except for the Japanese yen where it improved to 3.2021/2057 from 3.2061/2087 at Tuesday’s close.
The ringgit depreciated vis-à-vis the British pound to 5.9935/9999 from 5.9924/9968 and slid against the euro to 5.1198/1252 from 5.1163/1201 previously.
Similarly, the local note traded mostly lower against Asean currencies.
The local unit eased against the Singapore dollar to 3.5302/5342 versus 3.5273/5304 at Tuesday’s close, but strengthened against the Thai baht to 13.3321/3511 from 13.3572/3727 previously.
It was lower against the Indonesian rupiah at 299.6/300.2 compared to 299.4/299.7 yesterday and declined versus the Philippines’ peso to 8.40/8.41 from 8.37/8.38 previously.
— Bernama
