KUALA LUMPUR: The ringgit closed easier against the US dollar today in line with regional currencies after the US Federal Reserve (Fed) cooled market expectations for aggressive policy easing in July.
At 6pm, the local currency stood at 4.1450/1500 versus the greenback compared with 4.1440/4470 on Tuesday.
FXTM market analyst Han Tan said the market responded to the Fed’s statement that it will not be cutting interest rates as soon as what has been priced into the market, thus supporting the near-term outlook for the US dollar.
“Even though US economic growth is moderating, the prospects of incoming monetary policy stimulus may help buffer the resilience of the world’s largest economy, which should in turn prop up the greenback,” he said.
At the close, the ringgit was mostly higher against a basket of major currencies.
The local currency weakened against the Singapore dollar to 3.0608/0650 from 3.0603/0637 on Tuesday but strengthened against the Japanese yen to 3.8490/8547 from 3.8693/8724.
The ringgit strengthened against the pound to 5.2571/2651 from 5.2857/2903 and appreciated against the euro to 4.7083/7144 from 4.7146/7196. — Bernama
Source: The Sun Daily