Ringgit slips against US dollar as rate rise expectations strengthen
The Malaysian currency gained against the euro, pound and yen, as well as most regional peers, but weakened against the Singapore dollar.
The ringgit weakened against the US dollar on November 11 as stronger-than-expected US inflation increased expectations of higher interest rates. At 6pm, it stood at 4.0710/0745 per US dollar, compared with the previous close of 4.0540/0580, while gaining against most other major and regional currencies.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the ringgit had lost almost 0.45 per cent against the dollar. He said the above-forecast October US consumer price index reading had pushed the probability of a December Federal Open Market Committee rate increase above 80 per cent. The prospect of a 50-basis-point rise supported dollar demand, he said, with the US Dollar Index increasing 0.18 per cent to 102.412 points.
Against the euro, the ringgit improved to 4.5343/5382, compared with 4.5514/5559 at the preceding close. It also gained against the British pound, reaching 5.4246/4293 versus 5.4425/4479, and edged higher against the Japanese yen to 2.5609/5632 versus 2.5642/5669.
Regional trading saw the ringgit strengthen against the Thai baht to 12.0963/1117, compared with 12.1337/1497. It advanced against the Indonesian rupiah to 224.3/224.6 versus 224.4/224.7 and against the Philippine peso to 6.43/6.44 versus 6.44/6.45. The Singapore dollar was an exception: the ringgit eased to 3.1745/1775, compared with 3.1726/1758 at the previous close.
