Ringgit Rises Against Major Currencies, Eases Vs US Dollar

By Zufazlin Baharuddin

KUALA LUMPUR, Aug 20 (Bernama) -- The ringgit appreciated against most major currencies but eased slightly against the greenback at the close on Wednesday amid cautious market sentiments ahead of the release of the US Federal Open Market Committee (FOMC) meeting minutes later tonight.

At 6 pm, the local note dipped to 4.2250/2290 against the US dollar from yesterday’s close of 4.2215/2255.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that apart from the minutes, comments by senior US central bank officials will also come into focus after the release of the FOMC details. “Markets are anxious about whether the US Federal Reserve (Fed) will deliver a 25 basis points interest rate cut in the upcoming FOMC meeting,” he told Bernama.

Afzanizam said last week’s US consumer price index and producer price index dynamics suggested that the Fed might continue to focus on inflation, but noted that the weak labour market warranted additional monetary stimulus. In addition, the market sentiment will stay guarded ahead of policy signals from the Fed’s Jackson Hole Economic Policy Symposium later this week. 

At the close, the ringgit settled mostly higher against a basket of major currencies.

It gained versus the euro to 4.9196/9242 from 4.9307/9354 yesterday and inched up against the British pound to 5.7033/7087 from 5.7066/7120, but dropped vis-à-vis the Japanese yen to 2.8648/8677 from 2.8572/8601.

The ringgit also traded mostly higher against other ASEAN currencies.

It gained versus the Singapore dollar to 3.2864/2898 from 3.2901/2935 at Tuesday’s close, strengthened against the Thai baht to 12.9756/9935 from 12.9848/13.0027 and inched up vis-à-vis the  Indonesian rupiah to 259.6/260.0 from 259.8/260.2. However, it slid against the Philippine peso to 7.41/7.42 from 7.39/7.40 yesterday.

-- BERNAMA