KUALA LUMPUR: The ringgit ended lower against the US dollar right now because the dollar continued to strengthen amid additional financial coverage tightening by the US Federal Reserve (Fed), mentioned an analyst.
At 6pm, the native forex fell to 4.3830/3870 against the dollar from Friday’s shut of 4.3650/3680.
He mentioned sturdy demand for the US dollar continued to harm the ringgit’s efficiency, and regular crude oil costs, which presently stood at above US$110 per barrel, have been unable to assist the native be aware.
“As Bank Negara Malaysia (BNM) is anticipated to maintain the in a single day coverage charge unchanged at 1.75 per cent throughout its third financial coverage assembly (of the yr) on May 11, and the US Dollar Index is to stay elevated at round 104.0, the ringgit might proceed to commerce underneath stress inside the 4.36-4.38 vary within the close to time period.
“The dollar might proceed to be supported by a sequence of potential hawkish statements by the Fed and rising worth pressures,” he added.
However, he mentioned Malaysia’s stronger-than-expected home macroeconomic studying on May 13, particularly for the Gross Domestic Product within the first quarter of 2022, might assist to restrict the ringgit’s depreciation.
Meanwhile, the ringgit was traded largely greater against a basket of main currencies.
It appreciated against the Singapore dollar to three.1478/1509 from Friday’s shut of three.1523/1549, elevated vis-a-vis the Japanese yen to three.3407/3440 from 3.3453/3479, and strengthened versus the euro to 4.6135/6178 from 4.6138/6170.
The native be aware, nevertheless, depreciated against the British pound to five.3972/4022 from 5.3868/3905. – Bernama
