Ringgit Ends Easier vs US Dollar, Major Currencies Ahead of FOMC Meeting

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Oct 22 (Bernama) -- The ringgit closed lower against the greenback and other major currencies on Thursday as investors remained cautious ahead of next week’s two-day US Federal Open Market Committee (FOMC) meeting.

This came amid a decline in US Treasury yields and the US Dollar Index (DXY).

At 6 pm, the ringgit eased to 4.0815/0850 against the greenback from Wednesday’s close of 4.0790/0825. 

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants’ reassessment of next week’s FOMC decision drove movements in the US DXY, with traders likely to focus on the accompanying FOMC statement for clues on a possible rate hike in December.

“In that sense, support for the DXY is still visible, and the US dollar-ringgit pair could continue to trade within a narrow range,” he said.

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

It decreased versus the Japanese yen to 2.6035/6057 from 2.5790/5814 at Wednesday’s close; it declined against the British pound to 5.4659/4706 from 5.4642/4689, and it inched down vis-a-vis the euro to 4.5790/5830 from 4.5770/5810.

The ringgit performed mostly higher against its ASEAN peers.

It gained versus the Thai baht to 12.0973/1120 from 12.1287/1434 at yesterday’s close, appreciated against the Indonesian rupiah to 225.9/226.3 from 226.2/226.7 and strengthened vis-a-vis the Philippine peso to 6.42/6.43 from 6.44/6.45.

The ringgit eased against the Singapore dollar to 3.1959/1992 from 3.1917/1947 at Wednesday's close.

-- BERNAMA