Ringgit ends lower against US dollar on weak demand

KUALA LUMPUR: The ringgit closed lower against the US dollar today as investors were reluctant to take positions ahead of the United States (US) Federal Reserve's (Fed) policy meeting.

At 6 pm, the local note ended at 4.6185/6235 versus the greenback compared with Wednesday’s closing of 4.5950/6000.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the local currency continued to remain weak as the market inched towards the US Federal Open Market Committee (FOMC) meeting, scheduled on June 13-14.

"The Reserve Bank of Australia and Bank of Canada’s decisions to unexpectedly raised their policy rates this week have certainly set the tone for the FOMC’s verdict from the market point of view.

"Against such a backdrop, the ringgit has been softening against the major currencies,” he told Bernama.

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

It fell to 3.3041/3079 against the Japanese yen from 3.2996/3034 at Wednesday’s closing, depreciated versus the British pound to 5.7537/7600 from 5.7212/7275 yesterday, and decreased vis-a-vis the euro to 4.9557/9610 from 4.9176/9229 previously.

Similarly, the local note was traded weaker against other Asean currencies.

The ringgit declined against the Singapore dollar to 3.4290/4332 from 3.4098/4137 on Wednesday, went down versus the Thai baht to 13.2647/2848 from 13.2303/2508, weakened against the Indonesian rupiah to 310.0/310.5 from 308.8/309.2 and slipped against the Philippine peso to 8.23/8.24 from 8.19/8.20 yesterday. - Bernama