Ringgit Remains Consistent Ahead of Fed Meeting

thecekodok


The ringgit managed to maintain its stability throughout the week at RM4.42 against the US dollar despite the giant currency’s strong position as a safe-haven asset amid ‘risk-off’ sentiment in the market.


At 10.15am, the ringgit was at 4.4290, stable since it opened early on Thursday compared to its close of 4.4300 at the end of Tuesday.


Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US dollar was gaining traction as the US Dollar Index (DXY) remained high following an increase in the latest US Consumer Price Index (CPI) data.


He added that the US Fed seemed likely to remain hawkish in 2025 and would continue to cut rates as the current monetary policy stance was still considered restrictive.


He added that although there was a risk of inflation rising due to potential tariff policies, the ringgit was expected to remain in a tight range throughout the day.


Meanwhile, the ringgit was trading lower against major world currencies.


It weakened against the British pound, falling to 5.6498/6632 from 5.6389/6459 and depreciated against the Japanese yen to 2.9083/9154 from 2.9013/9051.


Meanwhile, the ringgit showed some strength against the euro, rising to 4.6493/6604 from Wednesday's close of 4.6515/6573.


Meanwhile, the local currency posted mixed results against Asean currencies as well.


It depreciated against the Singapore dollar, trading at 3.2951/3032 from 3.2937/2980 on Wednesday and fell against the Thai baht to 13.0817/1224 from 13.0640/0875.


The ringgit remained unchanged against the Philippine peso at 7.59/7.61 but rose against the Indonesian rupiah to 277.9/278.7 up from 278.2/278.7 previously.

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