Ringgit closes weaker against dollar before FOMC meeting
The ringgit also fell against the yen, pound and euro, while recording gains against most ASEAN currencies.
Malaysia’s ringgit finished at 4.0815/0850 against the US dollar at 6 pm on October 22, down from the previous closing level of 4.0790/0825. Investors were cautious before the forthcoming two-day meeting of the US Federal Open Market Committee (FOMC).
US Treasury yields and the US Dollar Index (DXY) also declined. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said the index’s movements reflected market participants revisiting their expectations for the FOMC decision.
He said the statement issued alongside the decision would likely draw traders’ attention for signals about a possible December rate hike. In his view, the DXY continued to find support, while dollar-ringgit trading could remain confined to a narrow range.
The closing exchange rates against major currencies also showed losses for the ringgit. It stood at 2.6035/6057 against the Japanese yen, compared with 2.5790/5814 previously; 5.4659/4706 against the British pound, compared with 5.4642/4689; and 4.5790/5830 against the euro, compared with 4.5770/5810.
Against ASEAN currencies, the ringgit advanced to 12.0973/1120 against the Thai baht from 12.1287/1434. It also gained against the Indonesian rupiah, reaching 225.9/226.3 from 226.2/226.7, and the Philippine peso, reaching 6.42/6.43 from 6.44/6.45.
The Singapore dollar was the exception to those regional gains: the ringgit weakened to 3.1959/1992, compared with its previous close of 3.1917/1947.
