Ringgit slips as optimism over greenback grows

  • Forex
  • Monday, 21 Jun 2021

KUALA LUMPUR: The ringgit opened lower against the US dollar, as the optimistic mood among investors towards the greenback continued to strengthen the currency post-Federal Open Market Committee (FOMC) meeting last week.

At 9am, the local note slipped to 4.1430/1470 versus the greenback from 4.1380/1410 at Friday’s close.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the high possibility of a sooner-than-expected rate hike as hinted by the FOMC last week amid continuous improvement of the US economy had exerted a downward pressure on the ringgit.

On another note, the overall pandemic situation in Malaysia appears to be improving as seen by the utilisation rate of intensive care unit (ICU) beds which dropped to 94.0 per cent as at June 15, 2021 compared to a record high of 108.0 per cent on June 2, 2021.

"Moreover, the number of vaccination doses administered daily in the country has remained above 150,000 doses per day for six consecutive days from last Monday to Saturday.

"This should act as a positive catalyst for the ringgit this week. As such, the local currency may trade in the range of RM4.14 to RM4.15 against the US dollar today,” he told Bernama.

At the opening, the ringgit was mixed against a basket of major currencies.

It strengthened against the Singapore dollar to 3.0787/0821 versus 3.0851/0875 at Friday’s close, firmed against the pound to 5.7269/7324 from 5.7526/7568 and advanced against the euro to 4.9173/9221 from 4.9308/9344.

The local note, however, weakened vis-a-vis the Japanese yen to 3.7585/7625 from 3.7570/7598 previously. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In Business News

Malaysia's economy on solid and stable footing despite global headwinds - Tengku Zafrul
Hiap Teck posts RM156.01mil net profit in FY22
Gadang secures RM188mil contract from Public Works Department
HSBC expects OPR to touch 3.5% by 1H 2023
Gamuda posts record net profit of RM806.23mil in FY22
Aeon Credit Service posts 2Q net profit of RM75.65mil
Bursa reverses earlier gains to end lower, KLCI drops below 1,400 mark
Asia File records 25% sales increase in FY22
ECB policymakers back another jumbo hike as inflation rises further
Porsche debuts with US$72bil price tag in bumper IPO

Others Also Read