Ringgit ends flat against US dollar amid caution over Fed policy
An economist said markets still expected a December rate increase, while the ringgit weakened against the yen, pound and euro.
The ringgit finished trading on Oct 20 at 4.0805/0845 against the US dollar, matching Monday’s close. An analyst attributed the unchanged level to investor caution before the US Federal Reserve’s Oct 27-28 policy meeting.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the Malaysian currency’s movements were limited as Asian foreign exchange markets showed mixed results. He said the US Dollar Index had declined, with markets assigning a low likelihood to a rate increase at the October meeting.
However, investors appeared to retain expectations of a December increase, he said. He suggested that anticipation of a hawkish Fed stance could account for the ringgit’s narrow trading range.
Against major currencies, the ringgit weakened to 2.5803/5830 per Japanese yen from 2.5790/5817 on Monday. Its British pound rate slipped to 5.4475/4528 from 5.4369/4422, while the euro rate moved to 4.5771/5816 from 4.5726/5771.
Regional trading was mixed. The ringgit strengthened against Thailand’s baht, reaching 12.1241/1411 compared with 12.1451/1613, but fell against Singapore’s dollar to 3.1914/1950 from 3.1886/1920. It also weakened against Indonesia’s rupiah to 226.8/227.1 from 226.0/226.4. The Philippine peso rate held at 6.47/6.48.
