KUALA LUMPUR – The ringgit ended lower against the US dollar today as the greenback continued to strengthen amid further monetary policy tightening by the US Federal Reserve (Fed), said an analyst.
At 6pm, the local currency fell to 4.3830/3870 against the greenback from Friday’s close of 4.3650/3680.
He said strong demand for the US dollar continued to hurt the ringgit’s performance, and steady crude oil prices, which currently stood at above US$110 per barrel, were unable to support the local note.
“As Bank Negara Malaysia (BNM) is expected to keep the overnight policy rate unchanged at 1.75% during its third monetary policy meeting (of the year) on May 11, and the US Dollar Index is to remain elevated at around 104.0, the ringgit may continue to trade under pressure within the 4.36-4.38 range in the near term.
“The greenback may continue to be supported by a series of potential hawkish statements by the Fed and rising price pressures,” he added.
However, he said Malaysia’s stronger-than-expected domestic macroeconomic reading on May 13, especially for the gross domestic product in the first quarter of 2022, may help to limit the ringgit’s depreciation.
Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.
It appreciated against the Singapore dollar to 3.1478/1509 from Friday’s close of 3.1523/1549, increased vis-a-vis the Japanese yen to 3.3407/3440 from 3.3453/3479, and strengthened versus the euro to 4.6135/6178 from 4.6138/6170.
The local note, however, depreciated against the British pound to 5.3972/4022 from 5.3868/3905. – Bernama, May 9, 2022
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