KUALA LUMPUR: The ringgit retreated against the greenback at the close on Thursday as investors reassessed the US interest rate outlook following the US Federal Reserve's (Fed) interest rate cut on Wednesday, an economist said.
At 6 pm, the local note stood at 4.1945/1995 against the US dollar, down from yesterday’s close of 4.1860/1900.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local note saw some correction due to some uncertainty over the US interest rate outlook, although the US Federal Open Market Committee (FOMC) cut its key rate by 25 basis points last night. The US benchmark lending rates now range between 4.0 and 4.25 per cent.
"Clearly, the measured pace adopted by the Fed to ease its monetary policy suggests that they are still concerned about inflation, although they also acknowledge the fact that the labour market has weakened," Mohd Afzanizam told Bernama.
At the close, the ringgit was traded mostly lower against major currencies.
It strengthened against the yen to 2.8484/8520 from 2.8607/8636 at Wednesday's close, weakened to 5.7238/7306 against the British pound from 5.7131/7185 and dipped vis-à-vis the euro to 4.9654/9714 from 4.9583/9631 previously.
Against ASEAN currencies, the local note was mixed.
It climbed to 253.7/254.2 versus the Indonesian rupiah from 254.6/255.0 at Wednesday's close and rose against the Philippine peso to 7.35/7.36 from 7.36/7.37. However, it weakened against the Thai baht to 13.1903/2114 from 13.1892/2081 yesterday and fell to 3.2800/2842 against the Singapore dollar from 3.2793/2827. - Bernama
