Fed’s interest rate call will determine ringgit’s movement, says analyst

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Fed’s interest rate call will determine ringgit’s movement, says analyst
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The local note opened slightly higher today due to mild demand.

KUALA LUMPUR: The ringgit opened slightly higher against the US dollar this morning due to mild demand for the domestic note.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit’s appreciation was predictable as the local note has been in an oversold position from a technical standpoint. “But whether the slight appreciation can be sustained remains to be seen due to prevailing concerns over the Federal Open Market Committee meeting to decide on the US interest rates,” he told Bernama.

At 9am, the local note rose to 4.6925/4.6970 against the greenback from yesterday’s close of 4.6940/4.6980.It increased against the Japanese yen to 3.1766/3.1799 from 3.1776/3.1806 at Tuesday’s close and climbed against the euro to 5.0139/5.0187 from 5.0160/5.0203 previously, but was slightly lower versus the British pound at 5.8135/5.8191 from 5.8126/5.8175 yesterday.It appreciated vis-à-vis the Singapore dollar to 3.4385/3.4420 from 3.4436/3.

It was also slightly better against the Indonesian rupiah at 305.0/305.5 from 305.1/305.6 on Tuesday and was flat against the Philippine peso at 8.27/8.28 yesterday.

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