Ringgit opens lower as expectation of Fed rate hikes support US$

  • Forex
  • Wednesday, 19 Jan 2022

KUALA LUMPUR: The ringgit weakened against the US dollar at the opening today over markets expectations that the Federal Reserve (Fed) may raise interest rate, which would lend some support to the dollar, said an analyst.

At 9.01 am, the local currency was trading at 4.1925/1960 against the US dollar compared with 4.1815/1835 at Monday’s close.

Bank Islam Bhd chief economist Mohd Afzanizam Abdul Rashid said the sharp rise of the 10-year US Treasury note yield to 1.88 per cent has reinvigorated the view that the Fed is expected to raise its benchmark interest rate in March.

"This will certainly provides a boost to the US dollar and admittedly a weaker ringgit,” he told Bernama.

He said Bank Negara Malaysia’s (BNM) Monetary Policy Committee's first meeting of the year perhaps would shed some light on BNM’s assessment of the economy and what it could mean in respect to overnight policy rate (OPR).

"For now, expect the local note linger on a weaker bias,” he added.

The ringgit opened slightly lower versus the Singapore dollar to 3.1038/1080 from Monday’s close of 3.1020/1039 and depreciated against the Japanese yen to 3.6541/6579 from 3.6523/6544.

However, it strengthened against the British pound to 5.7005/7053 from 5.7207/7234 and increased vis-a-vis the euro to 4.7493/7532 from 4.7774/7796 previously. - Bernama


Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Ringgit , opening , Fed , BNM , MPC , OPR


Next In Business News

Red alert for global food security
It’s just not enough
Short Position - A shrinking wallet, Chicken and egg, Courier sector woes continue
Farm Fresh juggles cost pressures and expansion
Cypark shares beaten down
Borsig sale to provide lifeline for KNM
Malaysia to sustain growth
PetChem earnings soar on improved product prices
Axiata appoints Hans, Vivek as interim joint acting CEOs
Hap Seng posts higher net profit of RM156.3mil

Others Also Read