KUALA LUMPUR: The ringgit closed firmer in opposition to the US greenback right this moment because it staged a technical rebound after three days of losses, mentioned an analyst.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid famous that the native foreign money gained some energy right this moment, in tandem with a slight decline within the US Dollar Index (DXY) by 0.10% to 106.153 factors.
“Beyond the technical correction, the rate of interest outlook within the US and the strain within the Middle East would be the barometer for market sentiments within the foreign exchange market,” he informed eNM.
He mentioned uncertainty surrounding the US rate of interest outlook will proceed to be dollar-positive.
Meanwhile, SPI Asset Management managing director Stephen Innes mentioned positive aspects made by the ringgit right this moment had been restricted due to hawkish remarks from US Federal Reserve (Fed) chairman Jerome Powell throughout an International Monetary Fund panel dialogue in a single day.
He mentioned Powell’s feedback urged that the Fed would train persistence in reducing rates of interest, given the persistence of inflationary pressures within the US and the resilience of its financial system.
“This stance has anchored front-end US yields across the lofty 5% mark, limiting the potential positive aspects for Asia FX,” he added.
At 6pm, the ringgit improved to 4.7910/4.7950 in opposition to the buck from yesterday’s closing of 4.7945/4.7970.
At the shut, the ringgit traded principally decrease in opposition to a basket of main currencies.
It eased in opposition to the euro to 5.0981/5.1024 from 5.0966/5.0992 at yesterday’s shut, fell barely versus the British pound to 5.9720/5.9770 from 5.9701/5.9732 however went up vis-a-vis the Japanese yen to 3.0990/3.1018 from 3.1020/3.1038 yesterday.
The native foreign money traded principally larger in opposition to Asean currencies.
It gained on the Thai baht at 13.0194/13.0373 in contrast with 13.0858/13.0983 at yesterday’s shut, widened vis-a-vis the Indonesian rupiah to 295.3/295.7 from 296.3/296.6 and climbed up versus the Philippine peso to 8.37/8.39 from 8.41/8.42 beforehand.
However, the ringgit eased in opposition to the Singapore greenback to 3.5171/3.5200 from 3.5135/3.5156 yesterday.
