The market is expecting the US interest rates to rise to 4.5% from 4% currently

THE ringgit slipped further against the US dollar at the open today as lingering uncertainty weighed on the market, with investors split on what the US Federal Reserve’s (Fed) next monetary policy moves would be, said a dealer.

At 9.01am, the local note was traded at 4.4250/4300 against the US dollar compared to yesterday’s close of 4.4150/4200.

ActivTrades Trader Dyogenes Rodrigues Diniz said the market was predicting that US interest rates would rise to 4.5% from 4% currently.

“All eyes, however, will be on the press conference that will follow the announcement of the interest rate decision as it may offer important clues on how the Fed will behave during 2023 and whether it will take a more hawkish or dovish stance,” he said in a note.

The ringgit was traded mostly lower against a basket of major currencies this morning.

The local note eased against the British pound to 5.4317/4378 from yesterday’s close of 5.4190/4251, declined vis-a-vis the euro to 4.6666/6719 from yesterday’s 4.6622/6675 and weakened versus the Singapore dollar to 3.2686/2728 from 3.2641/2683.

It strengthened against the Japanese yen to 3.2119/2160 from 3.2311/2350 previously. — Bernama