RINGGIT continued to depreciate against the US dollar in morning trading Thursday as the US dollar regained strength on expectations of more Federal Reserve (Fed) interest rate hikes, an analyst said.
At 9am, the local currency eased to 4.5420/5505 against the US dollar from Wednesday’s close of 4.5400/5485.
ActivTrades Dyogenes dealer, Rodrigues Diniz said, after falling 0.75 percent against the ringgit, the US dollar bounced back and is now trading in the positive zone.
“The dollar’s rise followed the release of US core retail sales data for October which was higher than expected at 1.3 percent versus the 0.4 percent forecast.
“Core retail sales measure changes in the total value of sales at the retail level excluding automobiles and are an important indicator of consumer spending, which is also considered a thermometer of the health of the US economy,” he said.
According to Diniz, as one of the most effective measures to control inflation is a tighter monetary policy and this prompts the Federal Reserve to think about tighter measures such as the next interest rate hike which generally benefits the US currency.
Meanwhile, the ringgit traded mixed against a group of major currencies.
The ringgit appreciated against the Singapore dollar to 3.3148/3213 from 3.3185/3252 at Wednesday’s close and strengthened against the euro to 4.7178/7266 from 4.7311/7400 yesterday.
However, the local currency eased against the Japanese yen to 3.2568/2634 from 3.2561/2624 on Wednesday and weakened against the British pound to 5.4077/4178 from 5.4017/4118 previously. – Named
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