Ringgit Ends Lower As Fed Rate Hike Concerns Lift US Dollar

By Abdul Hamid A Rahman

KUALA LUMPUR, July 1 (Bernama) -- The ringgit ended lower against the US dollar today as expectations of a United States (US) Federal Reserve (Fed) rate hike continued to weigh on regional market sentiment.

At 6 pm, the local note depreciated to 4.0920/0965 versus the greenback from 4.0825/0870 at Tuesday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Asian currencies were generally weaker against the US dollar as investors remained focused on the possibility of further monetary tightening by the Fed.

“Last night, the US Job Openings and Labor Turnover Survey (JOLTS) report showed that the number of job openings was higher than consensus estimates in May.

“Tonight, markets will be observing the ADP Employment Change for June,” he told Bernama.

He said the Fed rate hike expectation had continued to support the strength of the US dollar, despite lower crude oil prices.

At the close, the ringgit was mostly lower against a basket of major currencies.

It fell versus the British pound to 5.4203/4262 from 5.4036/4096 at the close on Tuesday, and slid against the euro to 4.6600/6651 from 4.6528/6580 yesterday, but rose against the Japanese yen to 2.5144/5174 from 2.5154/5183 previously.

At the same time, the local note was mixed against regional currencies.

It rose against the Thai baht to 12.2526/2708 from 12.2874/3084 yesterday, and was marginally higher against the Philippine peso at 6.64/6.65 from 6.65/6.67 previously.

It was slightly lower against the Singapore dollar at 3.1555/1589 from 3.1532/1570 at Tuesday’s close, and was flat against the Indonesian rupiah at 227.9/228.3 from 227.9/228.3 previously.

-- BERNAMA