Ringgit opens marginally higher against US$ amid Fed hikes


KUALA LUMPUR: The ringgit opened marginally higher against the US dollar today despite fragile market sentiments over expectations of an aggressive monetary tightening by the United States Federal Reserve (Fed) that would take a toll on the economy, a dealer said.

At 9 am, the local currency was traded at 4.3970/4015 against the greenback from yesterday's close of 4.3985/4015.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said talks of a possible recession would also make market participants remain defensive, leading to a higher demand for safe-haven currencies.

"The ringgit is expected to remain in a tight range in the absence of fresh leads as the US markets closed last night.

"The ringgit versus the Singapore dollar saw a notable movement with the Singapore dollar closing at RM3.1736 yesterday after hovering around RM3.20 in the early part of June," he told Bernama.

According to a news report, the Fed is front-loading its interest rate hikes and sending the Fed Funds Rate (FFR) to a higher peak level than the last interest rate hike cycle’s peak of 2.50 per cent.

Fed chairman Jerome Powell has also indicated a 50 to 75-basis-point rate hike at the next Federal Open Market Committee (FOMC) meeting on July 26 and 27.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

The local note appreciated vis-a-vis the euro to 4.6314/6361 from yesterday's close of 4.6325/6357, strengthened versus the Singapore dollar to 3.1711/1748 from 3.1717/1743 and rose against the Japanese yen to 3.2553/2592 from 3.2627/2652.

It, however, depreciated against the British pound to 5.3951/4006 from 5.3864/3901 previously. - Bernama

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Business News

Wall Street opens lower as rally in growth stocks falters
Axiata’s tower arm edotco weighing US$700mil financing, sources say
MYAirline to operate as LCC, not ULCC
MUI sells 5.57% stake in PMC for RM6.45mil
Wiki Impact report: Bursa top 20 companies donated RM159.69mil in cash in 2021
FMM: Implementation of CPTPP is timely for Malaysian businesses to recover
Ringgit strengthens against US dollar at the close
Ancom Nylex completes acquisition of 25% stake in Ancom-Chemquest Terminals
RHB Bank Cambodia aims to become SME bank of choice by 2024
Bursa Malaysia ends higher for third consecutive day on Wall St rally

Others Also Read