Ringgit weakens against US dollar as Fed decision approaches
The Malaysian currency gained against the pound, yen and four ASEAN currencies, but lost ground against the euro.
The ringgit ended October 26 at 4.0855/0895 against the US dollar at 6pm, down from 4.0835/0875 at Friday’s close. Bernama reported that investors were cautious before the US Federal Reserve’s policy meeting.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that US President Donald Trump’s hawkish approach towards Iran raised the risk of higher crude oil prices. He said this formed an important backdrop for Federal Open Market Committee members considering inflation risks before their October 28 decision.
The ringgit’s performance against other major currencies was mixed. It rose against sterling, with the rate at 5.4517/4570 versus 5.4633/4687, and against the yen at 2.5961/5988 versus 2.6076/6103. Against the euro, however, it slipped to 4.5774/5819 from 4.5735/5780.
Regional trading brought gains for the ringgit. The Singapore dollar rate stood at 3.1920/1954, compared with 3.1952/1986, while the rupiah rate was 225.3/225.5 versus 225.8/226.1. Rates against the baht and Philippine peso moved respectively to 12.0766/0930 and 6.39/6.40, from 12.0985/1154 and 6.42/6.43.
