KUALA LUMPUR: The ringgit slipped against the US greenback on the opening immediately, with the greenback gaining additional traction as the ultimate Federal Open Market Committee (FOMC) meeting for the yr looms close to, an analyst stated.
At 9 am, the native word fell to 4.2290/2330 against the greenback from 4.2275/2295 at Monday’s shut.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid stated the US greenback is staging beneficial properties throughout main currencies, which was mirrored within the sharp rise within the US greenback index (DXY) that lingers at greater than 96 factors.
“The United Kingdom reported its first Omicron-related dying, implying draw back dangers to development stay clearly seen,” he advised Bernama, including that the state of affairs additional including the risk-off sentiments, resulting in greater demand for the greenback.
Furthermore, he stated the Bank of Canada has additionally introduced its financial coverage overview, preserving its midpoint inflation goal of 2.0 per cent whereas remaining dedicated to take care of the benchmark rates of interest at a low degree to help the financial restoration.
”All in all, the United States Federal Reserve actually stands out in respect to financial tightening marketing campaign,” he additional defined.
Hence, Mohd Afzanizam stated the US greenback could be extremely in demand and by extension, the ringgit may keep weak at round RM4.22 to RM4.23 immediately.
At the opening bell, the ringgit was traded combined against different main currencies.
The native word appreciated against the Singapore greenback to three.0900/0932 from 3.0907/0924 at Monday’s shut and rose versus the British pound to five.5844/5897 from 5.5993/6020.
However, it slipped against the euro to 4.7690/7736 from 4.7640/7662 and eased versus the Japanese yen to three.7214/7252 from 3.7178/7199 beforehand. – Bernama
