Ringgit opens lower as expectation of Fed rate hikes support US$


KUALA LUMPUR: The ringgit weakened in opposition to the US greenback on the opening immediately over markets expectations that the Federal Reserve (Fed) might elevate curiosity rate, which might lend some support to the greenback, stated an analyst.

At 9.01 am, the native forex was buying and selling at 4.1925/1960 in opposition to the US greenback in contrast with 4.1815/1835 at Monday’s shut.

Bank Islam Bhd chief economist Mohd Afzanizam Abdul Rashid stated the sharp rise of the 10-year US Treasury word yield to 1.88 per cent has reinvigorated the view that the Fed is anticipated to boost its benchmark curiosity rate in March.

“This will definitely supplies a lift to the US greenback and admittedly a weaker ringgit,” he informed Bernama.

He stated Bank Negara Malaysia’s (BNM) Monetary Policy Committee’s first assembly of the yr maybe would shed some mild on BNM’s evaluation of the economic system and what it may imply in respect to in a single day coverage rate (OPR).

“For now, anticipate the native word linger on a weaker bias,” he added.

The ringgit opened barely lower versus the Singapore greenback to three.1038/1080 from Monday’s shut of 3.1020/1039 and depreciated in opposition to the Japanese yen to three.6541/6579 from 3.6523/6544.

However, it strengthened in opposition to the British pound to five.7005/7053 from 5.7207/7234 and elevated vis-a-vis the euro to 4.7493/7532 from 4.7774/7796 beforehand. – Bernama


Source link