Ringgit retreats against the US dollar in early trade, but rises against major currencies

The decline is due to the lack of interest in the local currency on the possibility of another interest rate hike by the Fed

THE ringgit retreated from yesterday’s gains to open lower against the US dollar today due to the lack of interest in the local currency as the greenback strengthened on the possibility of another interest rate hike by the US Federal Reserve (Fed), a dealer said.

At 9.05am, the local note was traded at 4.4300/4380 against the greenback from yesterday’s close of 4.4215/4255.

SPI Asset Management MD Stephen Innes opined that the Asian forex exchange will struggle as the market veers into risk aversion, due to the assumption that the Fed will continue hiking interest rates too aggressively which could send the global economy into recession.

“Although the ringgit’s medium-term outlook remains favourable, I expect this to be another transient bump on the road due to external factors,” he told Bernama.

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

The local note was traded slightly higher versus the Singapore dollar at 3.2718/2784 from yesterday’s closing of 3.2798/2833 and appreciated vis-a-vis the Japanese yen to 3.3401/3464 from 3.3486/3521 previously.

The ringgit also strengthened against the British pound to 5.3257/3354 from yesterday’s 5.3522/3571 and firmed against the euro to 4.6909/6994 from 4.7085/7127. — Bernama / pic TMR File