Ringgit at 27-month low amid US recession worries

The local unit was traded mostly lower against a basket of major currencies. It depreciated against the British pound to 5.2762 and 2780 from 5.2753 and 2783 on Wednesday, decreased versus the euro to 4.4635 and 4650 from 4.4524 and 4549 and lower vis-a-vis the Singapore dollar at 3.1717 and 1732 from 3.1559 and 1582 yesterday.

KUALA LUMPUR: The ringgit ended at its lowest since March 2020 on the US dollar’s strength amid fresh recession worries after the world’s largest economy reported inflation hitting a 40-year high in June.

The United States consumer prices surged by 9.1%, a significant increase from 8.6% in May, with the market now predicting a 100-basis points (bps) hike in interest rate this month from 75 bps previously.