Ringgit slips to new all-time low against US dollar at opening

Ringgit slips to new all-time low against US dollar at opening

At 9am, the local currency slid to 4.5640/5680 against the greenback from 4.5585/5595 at yesterday’s close. — Reuters pic

Wednesday, 21 Sep 2022 9:47 AM MYT

KUALA LUMPUR, Sept 21 — The ringgit slipped to a fresh all-time low against the US dollar at the opening on Wednesday, breaching the 4.5600 level due to the lower oil prices, coupled with the strengthening of the greenback, a dealer said.

At 9am, the local currency slid to 4.5640/5680 against the greenback from 4.5585/5595 at yesterday’s close.

At press time, the benchmark Brent crude oil price fell 0.29 per cent to US$90.36 per barrel.

ActivTrades trader, Dyogenes Rodrigues Diniz said the US dollar remained bullish in anticipation of the interest rate decision by the Federal Open Market Committee (FOMC) in the United States (US) later today.

He said the market expectation is that the interest rate will be increased by 75 basis points (bps) to 3.25 per cent a year.

“If this forecast proves to be correct, it is likely that the dollar will retract against the ringgit at first, as the market has already priced in this scenario.

“On the other hand, if the US Federal Reserve raises the interest rate more than expected to 3.5 per cent per year, the dollar could continue its upward movement against the ringgit towards the 4.6000-level,” he told Bernama.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

It fell against the Japanese yen to 3.1758/1788 from 3.1725/1734 at yesterday’s close and inched down versus the Singapore dollar to 3.2357/2388 from 3.2341/2353 previously.

However, the local note appreciated against the British pound to 5.1893/1938 from 5.2049/2060 on Tuesday and rose vis-a-vis the euro to 4.5462/5502 from 4.5608/5618 previously. — Bernmaa