Ringgit Ends Higher Ahead Of Fed Comments

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Aug 6 (Bernama) -- The ringgit closed higher against the US dollar as investors took advantage of the greenback’s weakness ahead of comments from United States (US) Federal Reserve (Fed) officials tonight, said an analyst.

At 6 pm, the local note rose to 4.2235/2305 against the greenback from Tuesday’s close of 4.2260/2310.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the comments from Fed officials will shape traders’ and investors’ expectations for an interest rate cut in September.

“Thus far, US data points such as nonfarm payrolls and the Institute for Supply Management index have been supportive of a rate cut. A mixed view among the Fed officials could support the US dollar, albeit momentarily,” he said.

A series of Fed speakers -- San Francisco Fed President Mary Daly, Boston Fed President Susan Collins, and Fed Governor Lisa Cook -- will be speaking to the public later in the day to shed more light on the future direction of US interest rates. 

Meanwhile, the ringgit ended mostly lower against major currencies at today’s close, except for the Japanese yen.

The ringgit gained against the yen to 2.8570/8619 from 2.8618/8654 at the close on Tuesday; however, it inched down versus the British pound to 5.6160/6253 from 5.6159/6226, and the euro to 4.8929/9010 from 4.8772/8830 previously.

The ringgit also trended mostly lower against regional peers.

It strengthened against the Thai baht to 13.0291/0567 from 13.0408/0627, but dropped against the Singapore dollar to 3.2806/2863 from 3.2793/2834, reduced against the Indonesian rupiah to 258.1/258.6 from 257.8/258.2 and eased against the Philippine peso to 7.34/7.36 from 7.33/7.34 previously.

-- BERNAMA