Ringgit slips against USD as Fed turns hawkish

  • Forex
  • Thursday, 18 Jan 2018

At 9.07 am(0107 Malaysian tme), the local unit stood at 4.1740/1770 against the greenback from Wednesday's close of 4.1730/1760.

KUALA LUMPUR: The ringgit depreciated against the US dollar in early trade today on a lack of buying momentum, said a dealer.  

At 9.00 am, the ringgit stood at 3.9625/9655 against the greenback from Wednesday's close 3.9520/9560.  

Oanda Corp Head of Trading for Asia Pacific, Stephen Innes, said the ringgit would pause for thought as the broader US dollar sell-off abated on the back of higher US yields and hawkish Federal Reserve rhetoric on an interest rate hike.  

He added that the ringgit could enter a period of consolidation while awaiting the next domestic catalyst.

"There were some jitters in the ringgit bond markets yesterday.After attempting to rally at yesterday's opening, the moves were met with a wave of selling, which carried on throughout yesterday''s session, suggesting the market was looking to trim risk,” he said in a note today.  

In the absence of any local bond demand, the market could see the US dollar/ringgit edging higher compounded by higher US yields and a moderately stronger greenback, said Innes.

Meanwhile, the ringgit traded mixed against a basket of major currencies.

It strengthened against the euro to 4.8303/8351 from Wednesday's 4.8388/8441 and appreciated against the yen to 3.5596/5629 from 3.5674/5720.  The ringgit eased against the British pound to 5.4754/4811 from 5.4506/4577 and declined against the Singapore dollar to 2.9888/9917 from 2.9867/9906. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3


Did you find this article insightful?


Next In Business News

China banking regulator says property market is biggest 'grey rhino'
PBOC says China must prevent fiscal deficit monetisation
LBS Group reports stronger sequential performance in 3Q
Ringgit ends easier against US dollar at 4.0730
Super normal profit for Comfort Gloves as 3Q earnings surge over 1,000%
Eversendai posts 3Q net loss of RM35.8m
Mah Sing Group on track to achieve RM1.1b target
Trump to add China's SMIC and CNOOC to defence blacklist
KLCI slumps over 40 points in regional sell-off
Hong Kong stocks drop, but post best month in nearly 2 years

Stories You'll Enjoy