Ringgit weakens against dollar but gains against major currencies
Investors remained cautious before the Federal Reserve’s December meeting, while the ringgit’s performance against regional currencies was mixed.
Malaysia’s ringgit began trading on November 13 at 4.0780/0840 per US dollar at 8am, weaker than the previous closing level of 4.0765/0805. Investors were cautious ahead of the US Federal Reserve’s December policy meeting.
The US Dollar Index had risen to 103.198 points amid expectations of possible monetary tightening by the Fed, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. He said a 3.27 per cent increase in Brent crude to US$95.79 a barrel suggested inflationary pressures could stay elevated.
Afzanizam told Bernama that traders had paid little attention to US initial jobless claims rising to 200,000 and existing home sales falling 5.5 per cent month-on-month, with rate-rise expectations dominating sentiment. His forecast range for the ringgit on November 13 was RM4.07 to RM4.08 against the dollar.
The ringgit nevertheless recorded gains against the euro, British pound and Japanese yen. Its euro quotation improved from 4.5225/5269 to 4.5054/5120, while the pound moved from 5.4103/4156 to 5.3952/4031. Against the yen, it advanced from 2.5524/5551 to 2.5503/5543.
Regional currency trading was mixed: the ringgit gained against the Singapore dollar and Thai baht, showed little movement against the Indonesian rupiah and held steady against the Philippine peso.
