THE ringgit prolonged its downtrend towards the US greenback within the early commerce at the moment, as danger urge for food within the native market was dampened by the bullish buck sentiment forward of the US (US) Federal Open Market Committee (FOMC).
At 9 am, the native notice slid to 4.5670/5710 towards the US greenback from 4.5600/5655 on the shut final Friday.
Financial institution Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid advised Bernama that the native sentiment is predicted to stay cautious this week as merchants focus on a collection of main central financial institution conferences, beginning with the FOMC assembly on July 25-26.
He famous that the majority economists expect 25 foundation factors hike within the US, and the European Central Financial institution can be anticipated to do the identical.
“Nevertheless, the Financial institution of Japan’s coverage assembly on July 28-29 can be the primary outlier as they may wish to hold their extreme financial coverage lodging, notably the Yield Curve Management (YCC),” he mentioned.
YCC is a central financial institution’s financial coverage technique to focus on and handle particular yields or rates of interest on authorities bonds.
Mohd Afzanizam mentioned that the market has priced in any hike chance from the FOMC assembly, due to this fact the affect on the ringgit wouldn’t be vital.
“As such, we should always see demand for the US greenback firming up and anticipate the USD/MYR to maneuver between RM4.56 to RM4.57 at the moment,” he mentioned.
In the meantime, the ringgit additionally turned weaker towards a basket of main currencies.
It decreased vis-a-vis the euro to five.0826/0871 from 5.0735/0796 at Friday’s shut, slipped versus the Japanese yen to three.2235/2267 from 3.2185/2229 and slid towards the British pound to five.8745/8797 from 5.8669/8740 beforehand.
Equally, the native notice additionally traded decrease towards different Asean currencies.
The ringgit depreciated versus the Singapore greenback to three.4328/4363 from 3.4304/4350 on Friday, fell vis-a-vis the Philippines’ peso to eight.34/8.36 from 8.33/8.34, eased towards the Indonesian rupiah to 303.8/304.3 from 303.4/303.9, and decreased towards the Thai baht to 13.2434/2608 from 13.2327/2541 beforehand. — Bernama / pic Bloomberg