KUALA LUMPUR, June 12 — The ringgit strengthened against the United States (US) dollar at the close on Wednesday as markets await the Federal Open Market Committee (FOMC) decision tonight.
At 6pm, the ringgit rose to 4.7160/7185 versus the greenback from yesterday’s close of 4.7175/7205.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) continues to hover above 105 points as the US Federal Reserve maintains a restrictive stance following the strong US Nonfarm Payrolls data last Friday.
“However, the jury is still out, and the latest macroeconomic projection will be the crucial factor that will set the tone for the rate cut anticipation.
“For now, September is expected to be the month where the Fed will commence the monetary easing based on consensus estimates,” he told Bernama.
At the close, the ringgit was traded mostly lower against a basket of major currencies.
The local unit strengthened versus the Japanese yen to 2.9977/9995 from Tuesday’s close of 3.0000/0021 but slid against the euro to 5.0711/0738 from 5.0708/0741 yesterday and depreciated vis-à-vis the British pound to 6.0157/0189 from 6.0073/0111 previously.
Against its Asean peers, the local note appreciated vis-à-vis the Indonesian rupiah to 289.3/289.7 from 289.5/289.9 at Tuesday’s close.
However, it had eased against the Singapore dollar to 3.4879/4900 from 3.4862/4887 yesterday, fell versus the Thai baht to 12.8529/8643 from 12.8364/8491 and was lower against the Philippines’ peso at 8.04/8.05 from 8.03/8.04 previously.
— Bernama
