KUALA LUMPUR: The ringgit ended lower against the US dollar on Tuesday as investors remained cautious ahead of the two-day US Federal Open Market Committee (FOMC) meeting, which begins tonight, an analyst said.
At 6 pm, the local currency dipped to 4.0835/0880 against the greenback from Monday’s close of 4.0735/0770.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the odds for a US rate hike this week were reportedly at 92.3 per cent based on data from CME FedWatch. CME FedWatch is a tool by the Chicago Mercantile Exchange (CME Group) that shows market expectations for the US Federal Reserve’s (Fed) interest-rate decisions.
"Consequently, the US Dollar Index (DXY) rose 0.25 per cent to 99.641 points while the 10-year US Treasury note yield surpassed the 5.00 per cent level. Other Asian currencies such as the Indonesian rupiah, Thai baht and Singapore dollar were also weaker against the US dollar,” he told Bernama today.
At the close, the ringgit weakened against the euro to 4.7111/7163 from Monday’s close of 4.7008/7049, fell against yen to 2.6366/6396 from 2.6355/6380, and inched down vis-a-vis the British pound to 5.5037/5098 from 5.4931/4978 previously.
Against its ASEAN peers, the ringgit eased against the Singapore dollar to 3.2093/2131 from 3.2055/2085, and retreated against the Thai baht to 12.2620/2800 from 12.2445/2598.
The local note was also marginally lower against the Indonesian rupiah at 230.7/231.1 from 230.5/230.8 yesterday, and was down vis-à-vis the Philippine peso to 6.50/6.51 from 6.48/6.49 previously. - Bernama
