Ringgit eases further as risk-off mode remains after Fed’s minutes

THE ringgit ended at its lowest since early January 2017 against the US dollar as risk-off sentiment gathered pace after the US Federal Reserve’s (Fed) July meeting minutes suggested that the trend toward higher interest rates would continue.

The Fed said inflation remains high despite aggressive rate hikes, reaffirming its plans to continue raising interest rates to combat elevated inflation.

This is keeping the greenback more buoyed, boosting the US Dollar Index by 106.736 points.

The latest data also showed signs of slowing economic activities, with the safe haven currency projected to remain in demand. Investors will closely monitor next week’s Jackson Hole symposium for further clues.

At 6pm, the local currency dipped to 4.4720/4750 against the greenback from Wednesday’s close of 4.4660/4685. The ringgit was traded mixed against a basket of major currencies.

It fell against the Singapore dollar to 3.2371/2397 from 3.2315/2338 at Wednesday’s close and declined against the euro at 4.5471/5502 from 4.5455/5480 previously.

The local unit increased vis-a-vis the Japanese yen at 3.3077/3102 from 3.3126/3147 yesterday and rose against the British pound to 5.3959/3995 from 5.4048/4078. — Bernama / Pic by TMR FILE