Ringgit Opens Lower Against US Dollar Following Speculation On Fed Rate Hike | Money
LONDON, December 6 – The ringgit weakened against the US dollar as it opened today as investor expectations for the Federal Reserve’s rate hike remained intact and provided some support to the dollar, said an analyst.
At 9 a.m., the local score stood at 4.2320 / 2340 against the greenback against 4.2290 / 2320 at the close on Friday.
Kenanga Investment Bank said the ringgit may strengthen momentarily near the 4.22 level as the 10-year US Treasury yield fell below the 1.35% level on Friday.
“This is in the midst of a disappointing US jobs report in November. However, the continued spread of Omicron’s business around the world will continue to confuse investors, causing a sale of risky assets,” he said. the bank said in a note today.
Kenanga said that a potential increase in the US inflation rate would continue to push the US dollar index closer to the 97.0 area, weakening the ringgit to between 4.23 and 4.25.
âBased on our technical analysis, the indicator suggests that the ringgit may appreciate slightly against the US dollar by 0.12% to 4.226 this week,â he added.
The local note traded lower against a basket of major currencies.
The ringgit fell against the Singapore dollar at 3.0857 / 0876 from 3.0844 / 0870 at Friday’s close, eased against the British pound at 5.5994 / 6020 against 5.6182 / 6222.
It also weakened against the Japanese yen at 3.7438 / 7459 against 3.7316 / 7346 and fell against the euro at 4.7784 / 7806 against 4.7771 / 7805 previously. – Bernama