KUALA LUMPUR: The ringgit appreciated against most major and Asean currencies at yesterday’s close, although it declined against the US dollar.
This fluctuation occurred amid rising Brent crude prices, as markets anticipated the upcoming Federal Open Market Committee (FOMC) and Bank of Japan (BoJ) meetings, said an analyst.
At 6pm, the local currency depreciated to 4.0735/0770 against the greenback from last Friday’s close of 4.0685/0725.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Brent crude oil prices are currently hovering at around US$107 per barrel, adding to inflationary pressures as markets brace for the upcoming FOMC and BoJ interest rate decisions.
“Inflationary bias would solidify the rate hike thesis this week. Following this, Asian currencies including the ringgit will remain guarded in the near term,” he told Bernama.
At the close yesterday, the ringgit strengthened against the euro to 4.7008/7049 from last Friday’s 4.7178/7225 and appreciated against yen to 2.6355/6380 from 2.6400/6428.
