Trace of one other US fee hike retains ringgit decrease



PETALING JAYA: The ringgit fell towards the USA greenback at yesterday’s shut because the dollar continued strengthening after the US Federal Reserve (Fed) hinted at one other rate of interest hike this 12 months.

At 6pm, the native foreign money stood at 4.2160/2190 versus the dollar from 4.2025/2060 at Monday’s shut.

“Clearly, the latest statements by the Fed officers have contributed to the robust US greenback.

“In mild of the continued navy battle which has vital affect on rising commodity costs, it might truly assist to bolster the case for the next US Fed fund fee,” Financial institution Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid mentioned.

He mentioned for now, traders have been uneasy over the financial insurance policies within the developed markets as liquidity circumstances is probably not so ample as earlier than, provided that these central banks are on the cusp of slicing down their asset purchases which had been the first drivers for greater fairness costs through the pandemic period prior to now two years.

On the shut, the ringgit was traded combined towards a basket of currencies. — Bernama

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