KUALA LUMPUR (March 14): The ringgit opened lower against the US dollar on Monday (March 14) as risk aversion impulses hit demand for the local currency.
At 9:01 a.m., the local currency had fallen further to 4.1960/2000 against the greenback against 4.1940/1975 at last Friday’s close.
Bank Islam Malaysia Bhd’s chief economist, Mohd Afzanizam Abdul Rashid, said the market will be watching none other than the Federal Open Market Committee (FOMC) meeting on Tuesday and Wednesday.
”It seems that most economists agree that the FOMC will propose a 25 basis point hike in the federal funds rate to 0.5%.
”The latest inflation print in February 2022 remained high at 7.9%, indicating that the Fed (US Federal Reserve) should continue with monetary tightening to bring the economy into line with its current state,” he said. he declares. Bernama.
Given prevailing concerns, the ringgit is likely to remain around 4.19-4.20 against the US dollar, he said.
The ringgit strengthened against a basket of major currencies except for the Japanese yen, where it depreciated to 3.0767/0801 from 3.5858/5891 at last Friday’s close.
The local unit rose against the pound to 5.4737/4789 from 5.4828/4874, rose to 4.5858/5902 against the euro from 4.5991/6030 and strengthened against the dollar Singapore to 3.0767/0801 from 3.0802/0832 last year. Friday.