Ringgit declines against US dollar

A money changer counts ringgit at a shop in Putrajaya October 26, 2007. — Reuters pic
A money changer counts ringgit at a shop in Putrajaya October 26, 2007. — Reuters pic

KUALA LUMPUR, Nov 9 — The ringgit ended lower against the US dollar today in line with most Asian currencies after the US Federal Reserve (Fed) reaffirmed its hawkish monetary policy stance and stayed on course for a December interest rate hike.

At 6pm, the ringgit stood at 4.1780/1810 versus the greenback from Thursday’s close of 4.1620/1670.

OANDA Head of Trading Asia-Pacific Stephen Innes said the ringgit continued to struggle due Bank Negara Malaysia and the Fed’s policy divergence.

“I’m more bearish on the ringgit than I’ve been in some time, and now looking for a test at 4.20 against the greenback in the weeks ahead,” he said.

Yesterday, BNM’s Monetary Policy Committee maintained the Overnight Policy Rate at 3.25 per cent, a level which is considered accommodative and consistent with the intended policy stance.

The local unit, however, was mostly higher against other major currencies.

The ringgit rose against the Singapore dollar to 3.0315/0341 from 3.0344/0385 today, but vis-a-vis the Japanese yen, it depreciated to 3.6685/6714 from 3.6605/6659.

It increased against the British pound to 5.4343/4386 from yesterday’s 5.4589/4659 and strengthened against the euro to 4.7362/7413 from 4.7534/7600 previously. — Bernama

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