KUALA LUMPUR: The ringgit ended higher against a basket of major currencies but slid against the US dollar on Thursday, as the greenback remained well supported despite waning expectations of an interest rate hike by the United States (US) Federal Reserve (Fed).
At 6 pm, the ringgit fell to 4.0830/4.0875 against the US dollar from Wednesday’s close of 4.0785/4.0820.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit traded in a narrow range of RM4.0820-RM4.0875 against the US dollar today.
"The odds of a US rate hike have gone down to below 50 per cent from more than 70 per cent previously, following the release of the latest personal consumption expenditures (PCE) inflation rate data, which was below market expectations.
"Despite that, the US dollar remains well supported with the US dollar Index rising by 0.30 per cent to 101.759 points,” he told Bernama.
On that note, he said there appeared to be a possibility that the Fed might pause its rate hike in October, while markets continued to adjust to the latest PCE inflation rate.
Against major currencies, the ringgit rose against the euro to 4.6015/6066 from 4.6324/6363 at Wednesday’s close, appreciated against the British pound to 5.3896/3955 from 5.4162/4209 yesterday, and firmed against the Japanese yen to 2.5781/5811 from 2.5969/5993 previously.
As for ASEAN currencies, the ringgit strengthened against the Singapore dollar to 3.1856/1894 from 3.1943/1973 at Wednesday’s close, appreciated against the Thai baht to 12.1111/1294 from 12.1521/1666 yesterday, and inched up against the Philippine peso at 6.50/6.51 from 6.51/6.52 previously.
The ringgit was little changed against the Indonesian rupiah at 227.2/227.6 versus 227.9/228.2. - Bernama
