KUALA LUMPUR: The ringgit continued to slip in opposition to the US greenback within the early session right this moment because the native foreign money remained in an overbought place forward of an anticipated rise in US rates of interest in Might, stated an analyst.
At 9.18 am, the native notice was pegged at 4.4350/4380 versus the dollar from Monday’s closing charge of 4.4200/4250.
Financial institution Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid stated the ringgit would probably keep weak right this moment, probably round RM4.42 to RM4.43 versus the dollar as technical indicators indicated the ringgit was at an overbought situation.
“The present resistant stage is positioned at RM4.4236 and the US greenback/ringgit may linger inside such a stage,” he advised Bernama.
Mohd Afzanizam stated US Treasury yields had been larger with the curiosity rate-sensitive two-year yield rising greater than 9 foundation factors to 4.19 per cent on anticipation that the US Federal Reserve (Fed) will resume tightening rates of interest in Might when it subsequent meets.
“Equally, the US greenback gauge, the US Greenback Index (DXY), went up by 0.54 per cent to 102.103 factors. Such tendencies resonate with discuss from a number of Fed officers who proceed to counsel {that a} restrictive financial stance is right here to remain,” he added.
In the meantime, the ringgit traded blended in opposition to a basket of main currencies.
It eased barely in opposition to the Japanese yen to three.2974/3001 from 3.2968/3008 on the shut on Monday, superior to 4.8448/8481 from 4.8532/8587 vis-a-vis the euro, and dropped in opposition to the British pound to five.4861/4898 from 5.4808/4870 yesterday.
On the similar time, the native notice was traded largely decrease in opposition to Asean currencies, apart from the Philippines’ peso which stood flat at 7.91/7.92 from Monday’s 7.91/7.93. It fell in opposition to the Indonesian rupiah fell to 299.7/300.1 from 298.7/299.2, was barely decrease in opposition to the Thai baht at 12.8607/8750 from 12.8604/8813, and declined in opposition to the Singapore greenback to three.3233/3258 from 3.3196/3238 yesterday. – Bernama