.jpg "A money changer counts US dollar notes in Kuala Lumpur October 29, 2021. u00e2u20acu201d Picture by Shafwan Zaidon")
KUALA LUMPUR, Jan 26 — The ringgit ended flat against the US dollar today as investors were on the sidelines, awaiting the outcome from the United States (US) Federal Open Market Committee (FOMC) meeting, dealers said.
At 6pm, the local note stood at 4.1890/1915 versus the US dollar from 4.1890/1905 at the close yesterday.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that indicators are suggesting that the ringgit is in a neutral zone, implying the market’s indecisiveness.
He said investors are keeping a close watch on the FOMC meeting which will be concluded tonight, especially with regards to the stance on the interest rate hike prospects.
He also noted that the US yield curve has also been flattening, with the spread between the 10-year and three-month US Treasury yield falling to 160 basis points from a high of 175 basis points recorded on Jan 18.
“Clearly the short-end of the yield curve has been reacting to market sentiments over a possible increase in the Federal Fund Rate. As such, the ringgit should trade in a narrow range in the immediate term,” he added.
Meanwhile, the local note was traded mixed against a basket of other major currencies.
The ringgit eased versus the euro to 4.7281/7309 from 4.7277/7294 at yesterday’s close and depreciated against the British pound to 5.6567/6610 from 5.6464/6484 yesterday.
Conversely, it had strengthened against the Japanese yen to 3.6710/6735 from 3.6723/6739 yesterday and rose against the Singapore dollar to 3.1152/1173 from 3.1168/1184 previously. — Bernama
