KUALA LUMPUR: The ringgit declined against the US dollar yesterday as expectations for a United States interest rate cut in December have diminished.
This is due to comments by key Federal Reserve (Fed) officials who signalled that interest rates are likely to remain unchanged.
At 6pm, the ringgit edged down to 4.1480/1515 versus the greenback from Friday’s close of 4.1290/1345.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said that such remarks from influential Fed officials appear to have lent the needed support to the US dollar, with the DXY Index rising by 0.10% to 99.400 points.
“Apart from that, technical indicators have shown that the ringgit is already in an overbought condition.
“This might compel traders to cash their gains in the currency market,” he told Bernama.
At the close, the ringgit traded lower against a basket of major currencies.
