Ringgit Ends Mostly Higher Against Major And Regional Currencies

By Abdul Hamid A Rahman

KUALA LUMPUR, Nov 11 (Bernama) -- The ringgit ended mostly higher on Wednesday against major and regional currencies but eased against the greenback amid renewed expectations of a hike in US interest rates.

This comes following stronger-than-expected US inflation data.

At 6 pm, the local currency fell to 4.0710/0745 against the greenback from 4.0540/0580 at Tuesday’s close. 

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit fell by almost 0.45 per cent against the greenback today as stronger-than-expected US inflation fuelled expectations of a rate hike in December. “The odds of a rate hike at the December Federal Open Market Committee (FOMC) meeting rose to more than 80 per cent after the October US consumer price index (CPI) reading came in above expectations,” he told Bernama.

Mohd Afzanizam said the prospect of a 50-basis-point increase in the federal funds rate at the December meeting lifted demand for the greenback, with the US Dollar Index (DXY) rising 0.18 per cent to 102.412 points.

The ringgit traded higher against a basket of major currencies.

It strengthened against the euro to 4.5343/5382 from 4.5514/5559 at Tuesday’s close and appreciated vis-a-vis the British pound to 5.4246/4293 from 5.4425/4479, and was marginally higher against the Japanese yen at 2.5609/5632 from 2.5642/5669.

The ringgit traded mostly higher against its ASEAN peers.

It appreciated against the Thai baht to 12.0963/1117 from 12.1337/1497, climbed vis-à-vis the Indonesian rupiah to 224.3/224.6 from 224.4/224.7 and rose against the Philippine peso to 6.43/6.44 from 6.44/6.45.

However, the local note edged down against the Singapore dollar to 3.1745/1775 from 3.1726/1758 on Tuesday.

-- BERNAMA