BERNAMA – The ringgit continued its downtrend momentum against the US dollar yesterday, in line with regional currencies’ performance amid the hawkish stance of the United States (US) Federal Reserve, said an analyst.
At 6pm, the local note finished at 4.6235/6280 against the greenback from 4.6195/6235 at Wednesday’s close.
SPI Asset Management managing partner Stephen Innes said the market was prepared for a Fed pause and guidance to one additional 25 basis points hike in June, but the Fed changed its guidance higher to 50 basis points, implying two hikes.
Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the projected Fed Fund Rate of 5.6 per cent by year-end from the previous forecast of 5.1 per cent suggested that the Fed would remain hawkish on their monetary policy stand.
“This may have contributed to the strength of the US dollar today,” he added.
It advanced against the Japanese yen to 3.2781/2816 from 3.3015/3046 but depreciated versus the British pound to 5.8543/8600 from 5.8423/8473 on Wednesday, and fell vis-a-vis the euro to 5.0151/0200 from 4.9918/9962.
However, the local note traded mixed against other Asean currencies.
The ringgit improved against the Thai baht to 13.2783/2981 from Wednesday’s 13.3192/3380 but eased against the Singapore dollar to 3.4442/4481 against 3.4433/4465 yesterday.
It was slightly higher versus the Indonesian rupiah at 309.1/309.6 from 309.8/310.3 but remained unchanged against the Philippine peso at 8.26/8.27.
