KUALA LUMPUR (Feb 2): The ringgit closed higher against the US dollar on Thursday (Feb 2) as the US Federal Reserve (Fed) increased its interest rates by another quarter-percentage point.

At 6pm, the ringgit ended the day at 4.2445/2490 against the greenback from Tuesday’s close of 4.2655/2700.

SPI Asset Management managing partner Stephen Innes said the US dollar was hit hard overnight after the market’s less hawkish interpretation of the Fed’s forward guidance.

“However, weaker US manufacturing and some follow-on poor China’s purchasing managers index from yesterday (Wednesday) triggered a sell-off on Brent crude and other commodities, likely causing the ringgit to retreat from the intraday best level at 4.2250 (against the US dollar).

“But the ringgit still closed on a stronger bias,” he told Bernama.

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

The local note depreciated against the Singapore dollar to 3.2498/2534 from Tuesday’s closing of 3.2386/2425 and eased vis-a-vis the Japanese yen to 3.2924/2961 from 3.2713/2750.

However, the ringgit rose against the British pound to 5.2381/2437 from 5.2559/2615 but fell versus the euro to 4.6685/6735 from 4.6187/6236 previously.

https://www.theedgemarkets.com/node/653887