KUALA LUMPUR: The ringgit continued to depreciate against the US dollar for the fourth consecutive day as the sentiment was weighed down by the stronger buck and the lack of home catalyst to carry the native foreign money, stated an analyst.
At 6 pm, the native foreign money weakened versus the buck to 4.4270/4285 from yesterday’s close of 4.4225/4260.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid stated the US dollar gained additional energy as the United States (US) Federal Reserve is more likely to proceed its restrictive insurance policies going ahead, primarily based on the US Federal Open Market Committee (FOMC) June assembly.
“This implies that one other 50 to 75 foundation factors hike is nearly a certainty throughout the subsequent FOMC assembly on July 26-27,” he advised Bernama.
He stated the US dollar additionally rose against the British pound sterling as political uncertainties loom giant after the United Kingdom Prime Minister Boris Johnson resigned from his submit at a time when the nation is grappling with a 40-year excessive inflation price.
“The US Dollar Index (DXY) stays elevated at round 107 factors, and the ringgit depreciated to close its resistant stage of RM4.44,” he added.
Meanwhile, the ringgit was traded combined against a basket of main currencies.
The native foreign money fell against the British pound to five.3115/3133 from 5.2800/2842 on Wednesday, and weakened vis-a-vis the Singapore dollar at 3.1601/1616 from 3.1504/1531 beforehand.
However, it had elevated versus the euro to 4.5186/5197 from 4.5220/5256 at Wednesday’s close and appreciated against the Japanese yen to three.2537/2551 from 3.2682/2710 yesterday. – Bernama