Stronger greenback puts ringgit under pressure


KUALA LUMPUR: The ringgit ended weaker in opposition to the US greenback on Tuesday following a stronger-than-expected US month-to-month jobs information for June.

This has boosted the US Dollar Index (DXY) worth to surpass 108 factors, first time since October 2002.

At 6 pm, the native forex depreciated versus the greenback to 4.4385/4405 from Friday’s shut of 4.4250/4270.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid mentioned the closely-watched US nonfarm payrolls (NFP), which got here in more-than-expected in June to 372,000 in opposition to consensus projection of 268,000, would definitely lent additional help for one more 75-basis factors (bps) hike within the Fed Funds Rate.

‘’If this materealises, the Fed Funds Rate could be at 2.50 per cent by the tip of July and seems to be on observe to attain the Federal Reserve’s (Fed) members’ forecast stage of three.40 per cent by end-2022.

“It appears like normalising financial coverage is on the forefront of the Fed’s technique, which makes the US greenback extra interesting,’’ he advised Bernama.

On the house entrance, based on analysts, Bank Negara Malaysia (BNM) is anticipated to lift the Overnight Policy Rate (OPR) yet another time throughout its September assembly by one other 25 bps to 2.50 per cent.

The ringgit was traded largely firmer in opposition to a basket of main currencies.

It strengthened in opposition to the British pound to five.2539/2562 from 5.2888/2912 on Friday and was increased vis-a-vis the Japanese yen to three.2414/2431 from 3.2577/2595 and elevated versus the euro to 4.4456/4476 from 4.4777/4797 beforehand.

The native unit, nevertheless, was decrease in opposition to the Singapore greenback at 3.1539/1556 from 3.1528/1547 recorded final Friday.

The market was closed yesterday in lieu of Aidiladha public vacation which fell on Sunday. – Bernama

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