Ringgit weaker vs US dollar in early session

THE ringgit eased against the US dollar in the early session today due to the lack of catalysts, said a dealer.

At 9.22am, the local currency was pegged at 4.473/4760 against the greenback from Thursday’s close of 4.47/4730.

ActivTrades trader Dyogenes Rodrigues Diniz said after a long bullish move that started in March, the US dollar could show the first signs of what could be the start of an important bearish trend ahead of the speech by the US Federal Reserve (Fed) chair Jerome Powell in Jackson Hole later today.

He noted that the market is a little apprehensive about Powell’s comments because there seems to be some disagreement among Fed directors on the size of the next interest rate hike, which is to be announced at the next meeting in September.

“Depending on what message Powell delivers, the US dollar/ringgit could fall to as low as 4.423 and 4.36 within a few weeks,” Diniz said in a note today.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

The local note appreciated against the euro to 4.4582/4612 from Thursday’s close of 4.4673/4703 and was slightly higher against the Singapore dollar at 3.2171/2197 from 3.2174/2201 previously.

It had also advanced against the British pound to 5.2862/2897 from 5.2902/2938 yesterday and improved against the Japanese yen to 3.2736/2760 from 3.275/2774 on Thursday. — Bernama / pic TMR FILE