KUALA LUMPUR – The ringgit opened lower against the greenback as the US Dollar Index (DXY) overnight strengthened, boosted by rising US Treasury yields, said an analyst.
At 9am, the local note fell to 4.4130/4185 versus the greenback from yesterday’s closing rate of 4.4070/4120.
Bank Muamalat Malaysia Bhd chief economist and social finance Mohd Afzanizam Abdul Rashid said the US DXY continued to move higher by 0.48% to 102.578 points as a Federal Reserve (Fed) official remained hawkish.
It was reported that the rate-setting committee member John Carroll Williams, who is the president of the Fed Bank of New York, said the pace of rate increases was the main cause for the collapse of two banks in March.
“As such, the markets are anticipating another quarter-point hike in the Fed fund rate in the upcoming Federal Open Market Committee (FOMC) meeting on May 2 and 3.
“As for the ringgit, it will stay soft and move in a narrow range. The data point has been commendable so far in Malaysia,” Afzanizam said.
Market players are also waiting for the US Consumer Price Index (CPI) data, which would be released tomorrow, he said.
“But for now, forex markets are anxious about the Fed decision and the US CPI report will be closely monitored,” he said.
Meanwhile, the ringgit traded higher against a basket of major currencies.
It increased vis-a-vis the euro to 4.8000/8060 from 4.8063/8117 at yesterday’s close, gained versus the British pound to 5.4712/4781 from 5.4801/4863 and appreciated against the Japanese yen to 3.3076/3120 compared with 3.3346/3386 previously.
The ringgit traded mixed against Asean currencies.
It improved against the Philippine peso at 8.08/8.11 from 8.10/8.11 previously and rose versus the Singapore dollar to 3.3131/3174 from 3.3158/3200.
The local note was lower compared with the Indonesian rupiah at 296.10/296.60 from 295.70/296.10 at yesterday’s close and dropped against the Thai baht to 12.8408/8624 from 12.8338/8547 previously. – Bernama, April 11, 2023
