KUALA LUMPUR: The ringgit opened lower against the greenback as the US Dollar Index (DXY) overnight strengthened, boosted by rising US Treasury yields, said an analyst.
At 9 am, the local note fell to 4.4130/4185 versus the greenback from Monday’s closing rate of 4.4070/4120.
Bank Muamalat Malaysia Bhd chief economist and social finance Dr Mohd Afzanizam Abdul Rashid said the US DXY continued to move higher by 0.48 per cent to 102.578 points as a Federal Reserve (Fed) official remained hawkish.
It was reported that the rate-setting committee member John Carroll Williams, who is the president of the Fed Bank of New York, said the pace of rate increases was the main cause for the collapse of two banks in March.
“As such, the markets are anticipating another quarter-point hike in the Fed fund rate in the upcoming Federal Open Market Committee (FOMC) meeting on May 2-3.
“As for the ringgit, it will stay soft and move in a narrow range. The data point has been commendable so far in Malaysia,” Afzanizam told Bernama.
Market players are also waiting for the US Consumer Price Index (CPI) data which would be released on Wednesday, he said.
“But for now, forex markets are anxious about the Fed decision and the US CPI report will be closely monitored,” he said.
Meanwhile, the ringgit traded higher against a basket of major currencies.
It increased vis-a-vis the euro to 4.8000/8060 from 4.8063/8117 at Monday’s close, gained versus the British pound to 5.4712/4781 from 5.4801/4863 and appreciated against the Japanese yen to 3.3076/3120 compared with 3.3346/3386 previously.
The ringgit traded mixed against Asean currencies.
It improved against the Philippine peso at 8.08/8.11 from 8.10/8.11 previously and rose versus the Singapore dollar to 3.3131/3174 from 3.3158/3200.
The local note was lower compared with the Indonesian rupiah at 296.10/296.60 from 295.70/296.10 at Monday’s close and dropped against the Thai baht to 12.8408/8624 from 12.8338/8547 previously.
Meanwhile, gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as the US dollar index rose, reported Xinhua.
The most active gold contract for June delivery fell US$22.60, or 1.12 per cent, to close at US$2,003.80 per ounce.
Following gold prices rising last week for the sixth week in a row, profit taking was the feature on Monday.
The US Labour Department reported Friday that the United States added 236,000 jobs in March, the smallest monthly gain since a decline in December 2020. Cooling job market may prompt the Federal Reserve to keep hiking interest rates at its May meeting.
The US Commerce Department reported Monday that US wholesale inventories inched up 0.1 per cent in February after falling 0.6 per cent in January. Economist had expected inventories to rise 0.2 per cent.
Investors are waiting for the consumer price index report due out Wednesday.
Silver for May delivery fell 18.10 cents, or 0.72 per cent, to close at US$24.912 per ounce. Platinum for July delivery fell US$13.90, or 1.37 per cent, to close at US$1,002.90 per ounce. – BERNAMA-XINHUA
