KUALA LUMPUR, Oct 29 — The ringgit continued its gains to end higher against the United States dollar today, following the US Federal Reserve’s (Fed) decision to keep the benchmark interest rate steady at 3.75 per cent to 4 per cent, an analyst said.
At 6pm, the ringgit climbed to 4.0575/0620 against the greenback from yesterday’s close of 4.0745/0790.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors would be monitoring the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, which is due for release tonight.
The index is expected to rise to 3.1 per cent in September from 3 per cent in the previous month.
He said the Fed could resume its rate-hiking cycle in December as inflation is expected to remain elevated in the near term.
“Monetary policy decisions remain dynamic, which means the anticipation for a 25 basis point hike in December was never a done deal.
“This is especially true when consumers’ confidence remains weak as the higher cost of living is affecting their purchasing power which could translate into weaker spending at some point,” he told Bernama.
Against major currencies, the ringgit strengthened against the British pound to 5.4009/4069 from 5.4130/4190 at yesterday’s close, and advanced against the euro to 4.5176/5226 from 4.5337/5387, and climbed vis-a-vis the Japanese yen to 2.5685/5715 from 2.5812/5843 previously.
The ringgit was also higher against its ASEAN peers.
It rose against the Singapore dollar to 3.1665/1702 from 3.1775/1813 at yesterday’s close and the Indonesian rupiah to 223.7/224.0 from 224.0/224.4.
It also gained against the Thai baht to 12.0165/0345 from 12.0726/0902, and inched up vis-a-vis the Philippine peso at 6.35/6.36 from 6.36/6.37 previously.
