Ringgit lower against US dollar for the third consecutive day


  • Forex
  • Wednesday, 06 Jul 2022

KUALA LUMPUR: The ringgit ended lower against the US dollar for the third consecutive day on the back of a strengthening greenback, said an analyst.

At 6 pm, the local currency slipped versus the greenback to 4.4225/4260 from yesterday’s close of 4.4185/4200.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit remained soft against the US dollar, hovering around the RM4.42 level.

"This occurs as risk-off sentiments continue to prevail which resulted in higher demand for the US dollar.

"The immediate resistant level is around the RM4.44 level.

"In light of concerns over the recession in the United States (US), we believe the ringgit remains weak currently,” he said.

He added that this month, the market should see another round of the US Federal Open Market Committee (FOMC) meeting between July 26 and 27.

"While 50 to 75 basis points are already priced in, the language in the accompanying statement would be more critical as to whether there could be a change in the FOMC’s economic assessment,” he added.

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

The local currency rose against the British pound to 5.2800/2842 from 5.3168/3186 on Tuesday and increased versus the euro to 4.5220/5256 from 4.5511/5526.

The ringgit, however, depreciated against the Japanese yen to 3.2682/2710 from 3.2530/2543 and was weaker vis-a-vis the Singapore dollar at 3.1504/1531 from 3.1486/1502 yesterday. - Bernama

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