KUALA LUMPUR: The ringgit closed firmer against the greenback yesterday as concerns over the US Federal Reserve’s (Fed) independence weighed on the American dollar.
At 6pm, the local currency advanced to 4.0605/0660 versus the US dollar from last Friday’s close of 4.0700/0765.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said concerns over the Fed’s independence have triggered a broad pullback from US assets.
This has weighed on the US dollar index while lifting emerging-market currencies, including the ringgit.
“For Malaysia, the key anchor remains the US bond market,” he told Bernama.
Mohd Sedek noted that oil prices rose on escalating unrest in Iran, supporting Malaysia’s trade position.
