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The Star
4 days ago
- Business
- The Star
Ringgit closes slightly lower against greenback
SPI Asset Management's Innes said the ringgit is under pressure mainly because of concerns the US Federal Reserve might keep interest rates higher for longer. KUALA LUMPUR: The ringgit slipped 0.01% against the US dollar at the close, as the local note continued trading on the defensive yesterday, which offered some technical comfort for the ringgit. At 6pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the US Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. 'Sticky core inflation, fuelled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. 'The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. 'This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index (CPI), which continued to increase in June to 2.7% from 2.4% previously. 'The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. 'In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said.
The Star
4 days ago
- Business
- The Star
Ringgit to be traded at RM4.24 and RM4.26 range this week; market participants will be closely watching US Fed moves
KUALA LUMPUR (Bernama): The ringgit is expected to hover around RM4.24 to RM4.26 this week amid mixed signals in the market. This follows the anticipation of a potential meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping, as well as the upcoming Federal Open Market Committee (FOMC) meeting by the end of the month. SPI Asset Management managing partner Stephen Innes said the market is expected to adopt a tone of cautious optimism next week, as the potential Trump-Xi meeting could reset the US-China dialogue, lifting broader Asian sentiment. "For Malaysia, any thaw in trade tensions could brighten the macro outlook and, by extension, offer a floor to the ringgit in the near term. That diplomatic backdrop, however tentative, has helped curb more aggressive ringgit selling into the weekend,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the next FOMC meeting will be held on July 29 and 30, and therefore, market participants will be closely watching to see whether the US Federal Reserve (Fed) will cut the Fed Fund Rate. "Next week, there are not many data points to look at other than some comments from the Fed officials; thus, the market will be adopting a wait-and-see stance,' he added. Meanwhile, Kenanga Investment Bank Bhd said the ringgit remains supported by improving domestic fundamentals, rising foreign direct investment inflows, and infrastructure catalysts such as the resumption of the Mass Rapid Transit 3 project. "We expect US dollar-ringgit to range between RM4.23 to RM4.25 per US dollar in the near term,' it said in a note today. On a Friday-to-Friday basis, the ringgit ended the week better against the greenback, closing at 4.2410/2455 as compared with 4.2475/2525 previously. The local note also traded higher against a basket of major currencies. The ringgit appreciated vis-à-vis the Japanese yen to 2.8517/8549 from 2.8893/8929, and strengthened against the British pound to 5.6999/7060 from 5.7524/7592 last Friday. It also rose versus the euro to 4.9336/9388 from 4.9679/9737 at the end of last week. Against Asean currencies, the ringgit traded mostly higher. The local note firmed against the Singapore dollar to 3.3027/3065 from 3.3186/3228, strengthened versus the Indonesian rupiah to 260.2/260.6 from 261.8/262.3 previously, and improved against the Philippine peso to 7.41/7.43 from 7.52/7.53 last Friday. However, it weakened versus the Thai baht to 13.3027/3065 from 13.0668/0886. - Bernama
Barnama
5 days ago
- Business
- Barnama
Market Jitters To Set Tone For Ringgit Next Week, With RM4.24-RM4.26 Range Expected
WORLD By Harizah Hanim Mohamed KUALA LUMPUR, July 19 (Bernama) -- The ringgit is expected to hover around RM4.24 to RM4.26 next week amid mixed signals in the market. This follows the anticipation of a potential meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping, as well as the upcoming Federal Open Market Committee (FOMC) meeting by the end of the month. SPI Asset Management managing partner Stephen Innes said the market is expected to adopt a tone of cautious optimism next week, as the potential Trump-Xi meeting could reset the US-China dialogue, lifting broader Asian sentiment. 'For Malaysia, any thaw in trade tensions could brighten the macro outlook and, by extension, offer a floor to the ringgit in the near term. That diplomatic backdrop, however tentative, has helped curb more aggressive ringgit selling into the weekend,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the next FOMC meeting will be held on July 29 and 30, and therefore, market participants will be closely watching to see whether the US Federal Reserve (Fed) will cut the Fed Fund Rate. 'Next week, there are not many data points to look at other than some comments from the Fed officials; thus, the market will be adopting a wait-and-see stance,' he added. Meanwhile, Kenanga Investment Bank Bhd said the ringgit remains supported by improving domestic fundamentals, rising foreign direct investment inflows, and infrastructure catalysts such as the resumption of the Mass Rapid Transit 3 project. 'We expect US dollar-ringgit to range between RM4.23 to RM4.25 per US dollar in the near term,' it said in a note today.
The Sun
25-06-2025
- Business
- The Sun
Ringgit extends gains as Fed signals rate hold
KUALA LUMPUR: The ringgit extended its upward momentum to open higher against the US dollar and other major currencies on Wednesday, after the United States (US) Federal Reserve (Fed) signalled it was in no hurry to cut interest rates, opting instead to monitor the economy's trajectory, an analyst said. At 8 am, the local note strengthened to 4.2350/2450 versus the greenback, compared with Tuesday's close of 4.2410/2465. The ringgit has gained 5.47 per cent year-to-date. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Fed chair Jerome Powell's testimony to the US House Financial Services Committee showed policymakers were in no rush to cut the Fed Fund Rate. Consequently, he said, the US Dollar Index (DXY) slipped further to 97.858 points, while Brent crude fell to US$67.14 per barrel. 'If the tone was less hawkish, it would cause bond yields to ease, and lower yields tend to make the US dollar less attractive to investors. 'This should benefit emerging market currencies, including the ringgit,' he told Bernama. He added that the ringgit closed 1.19 per cent higher against the US dollar on Tuesday, settling at RM4.2438. Afzanizam said the ringgit could potentially breach its immediate support level and hover around RM4.23 to RM4.24 today. At the opening, the ringgit traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.9211/9282 from 2.9256/9296 at Tuesday's close, appreciated versus the British pound to 5.7651/7787 from 5.7707/7782, and rose against the euro to 4.9173/9289 from 4.9225/9289 previously. The local note also traded firmer against its ASEAN counterparts. It improved against the Singapore dollar to 3.3083/3164 from 3.3130/3178, rose to 12.9701/13.0147 from 12.9793/13.0021 versus the Thai baht, advanced vis-à-vis the Indonesian rupiah to 258.9/259.6 from 259.3/259.7, and gained against the Philippine peso to 7.40/7.43 from 7.41/7.44.
The Star
18-06-2025
- Business
- The Star
Ringgit opens marginally higher vs US$, sentiment remains cautious
KUALA LUMPUR: The ringgit was slightly higher against the US dollar at today's opening with investors remaining cautious ahead of the United States (US) monetary policy outcome due later tonight, an analyst said. At 8 am, the local note was at 4.2360/2565 against the greenback from yesterday's close of 4.2390/2475. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors will stay vigilant and watchful ahead of the Federal Open Market Committee (FOMC) meeting outcome. He noted that the escalating geopolitical tension in the Middle East may influence FOMC's rate cut decision amid the uncertain global economic environment. "It appears that the rate cut chatter has been challenged by the latest development in the Middle East, where risks of a higher inflation rate would lead the Federal Reserve to be more cautious in delivering further reduction in the Fed Fund Rate this year," he told Bernama. At the opening, the ringgit traded higher against a basket of major currencies. It rose versus the Japanese yen to 2.9133/9276 from 2.9271/9332 at Tuesday's close, strengthened against the British pound to 5.6885/7161 from 5.7413/7528, and increased vis-à-vis the euro to 4.8638/8873 from 4.8986/9084 previously. Similarly, the ringgit was also firmer against its ASEAN counterparts. It rose vis-à-vis the Indonesian rupiah to 260.0/261.4 from yesterday's 260.2/260.8 and moved up to 7.47/7.51 against the Philippine peso from 7.48/7.49 previously. The local note also inched up against the Singapore dollar to 3.2924/3088 from 3.3068/3137 at yesterday's close, but fell versus the Thai baht to 12.9875/13.0592 from 13.0114/0443. - Bernama
