KUALA LUMPUR: The ringgit slipped against the greenback for a third consecutive day following the rise in the US Dollar Index (DXY) ahead of the US inflation data release tonight, an economist said.
At 6 pm, the local note fell to 4.4450/4495 versus the US dollar compared with Tuesday’s close of 4.4365/4400.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the DXY continued to march higher as market sentiments had become vastly different.
This came as the anticipation for a US rate cut in 2025 had become greatly diminished in view of the recent election outcome and its subsequent effect on the Federal Reserve’s (Fed) monetary policies, he said.
"The Fed is seen to be an outlier as other G7 economies have eased their monetary policy.
"We shall see whether the Fed would become a dissenter next year as this would be very hinged upon President Donald Trump’s policies,” he told Bernama.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It appreciated versus the British pound to 5.6678/6736 from 5.6889/6934 at Tuesday’s close and strengthened against the Japanese yen to 2.8692/8723 from 2.8788/8812 yesterday, but weakened vis-a-vis the euro to 4.7241/7289 from 4.7111/7148 previously.
The ringgit traded weaker compared to ASEAN currencies.
It fell against the Thai baht to 12.8235/8416 from 12.7456/7608 at yesterday’s close and depreciated versus the Singapore dollar to 3.3244/3280 from 3.3143/3174.
The local unit also went down vis-a-vis the Philippine peso to 7.57/7.58 from 7.54/7.55 yesterday and eased against the Indonesian rupiah to 281.5/282.0 from 281.0/281.5 previously. - Bernama
