Ringgit slips further against US dollar on market uncertainty

KUALA LUMPUR: The ringgit slipped further against the US dollar at the open today as lingering uncertainty weighed on the market, with investors split on what the US Federal Reserve’s (Fed) next monetary policy moves would be, said a dealer.

At 9.01 am, the local note was traded at 4.4250/4300 against the US dollar compared with 4.4150/4200 at the close yesterday.

ActivTrades Trader Dyogenes Rodrigues Diniz said the market was predicting that US interest rates would rise to 4.5 per cent from 4.0 per cent currently.

"All eyes, however, will be on the press conference that will follow the announcement of the interest rate decision as it may offer important clues on how the Fed will behave during 2023 and whether it will take a more hawkish or dovish stance,” he said in a note.

The ringgit was traded mostly lower against a basket of major currencies this morning.

The local note eased against the British pound to 5.4317/4378 from 5.4190/4251 at Monday’s close, declined vis-a-vis the euro to 4.6666/6719 from 4.6622/6675, and weakened versus the Singapore dollar to 3.2686/2728 from 3.2641/2683.

It strengthened against the Japanese yen to 3.2119/2160 from 3.2311/2350 previously. - Bernama