Ringgit slips as strong US dollar weighs on demand

Publish date: Thu, 23 May 2024, 09:43 AM

KUALA LUMPUR: The ringgit fell at Thursday's opening as the US dollar strengthened following Federal Reserve minutes highlighting growing concerns about inflation.

At 9 am, the ringgit depreciated to 4.7100/7130 against the greenback from Tuesday's close of 4.6950/6985.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) rose 0.25 per cent to 104.924 points as the FOMC meeting minutes suggested that some participants were willing to tighten monetary policy should inflation risks materialise.

"Consequently, the two-year US Treasury note, which is highly sensitive to the Fed Funds Rate, yielded 4.0 basis points higher at 4.87 per cent," he said.

As such, he expects the ringgit to remain weak against the US dollar given the minutes.

The ringgit traded mostly higher against a basket of major currencies.

The local unit appreciated against the Japanese yen to 3.0031/0052 from Tuesday's close of 3.0071/0095 and rose against the euro to 5.0986/1018 from 5.1044/1082. 

It slid against the British pound to 5.9906/9945 from 5.9730/9774 previously.

The ringgit traded mixed against ASEAN currencies. 

It decreased against the Philippine peso to 8.10/8.11 from 8.06/8.07, depreciated against the Singapore dollar to 3.4873/4898 from 3.4863/4890 at Tuesday's close, and slipped against the Indonesian rupiah to 294.5/294.7 from 293.4/293.8. 

However, the ringgit improved against the Thai baht to 12.9048/9176 from 12.9264/9407.

 - Bernama

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