KUALA LUMPUR, March 21 — The ringgit ended higher against the US dollar today for the fourth consecutive day, as the greenback weakened after the US Federal Reserve indicated there would be no interest rate increase this year.
At 6pm, the local currency stood at 4.0600/0650 against the greenback compared with Wednesday’s close of 4.0650/0690.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said judging from the dot plots and the downward revision in US Gross Domestic Product (GDP) growth, the Federal Open Market Committee meeting that was concluded last night suggested no rate hike this year.
“The downward revision in the US GDP growth also suggested that the downside risks have become elevated and the incoming data such as Purchasing Managers Index will be key things to watch in order to gauge the business sentiments,” he said.
Meanwhile, the resurfaced trade friction between the US and China (after US President Donald Trump indicated that US tariffs on China goods might be kept for a “substantial period”) as well as the UK Brexit extension date will also be in focus in the immediate term.
“In a nutshell, the external situation is very fluid at the moment and market sentiments could easily flip should the development appears unfavourable.
“We expect the ringgit could be traded in a tight range and perhaps there could be some technical correction in the immediate term,” he told Bernama.
The ringgit, however, was also traded lower against other major currencies, except the British pound.
It decreased against the Japanese yen to 3.6745/6801 from 3.6441/6487 and fell versus the euro to 4.6304/6374 from 4.6130/6187 on Wednesday.
The ringgit also depreciated versus Singapore dollar to 3.0125/0167 from 3.0080/0121 but advanced against the the British pound to 5.3470/3552 from 5.3756/3829 yesterday. — Bernama
