KUALA LUMPUR, June 7 — The ringgit ended lower against the US dollar on Tuesday as the US Federal Reserve (Fed) was set to maintain its course on monetary tightening, said an analyst.
At 6pm, the local currency declined to 4.3935/3960 against the greenback from Friday’s close of 4.3870/3910.
The market was closed yesterday in conjunction with the Yang di-Pertuan Agong’s official birthday.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Federal Open Market Committee members were set to meet next week on June 14 to 15, with a 50-basis point hike in its policy rate being almost a given outcome.
“The US Consumer Price Index for May will also be announced this week with inflation rate expected to remain on the high side. The 10-year US Treasury yield has surpassed the 3.0 per cent mark, signaling that inflation premium remains highly invisible,” he told Bernama.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
The local note rose against the Singapore dollar to 3.1936/1957 from Friday’s close of 3.1947/1981, and appreciated against the British pound to 5.4963/4994 from 5.5171/5221 previously.
It also strengthened against the euro to 4.6892/6919 from 4.7143/7186 on Friday, and increased vis-a-vis the Japanese yen to 3.3109/3130 from 3.3728/3759. — Bernama