Ringgit weakens against US dollar on US rate hike concerns

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KUALA LUMPUR (Dec 10): The ringgit was slightly lower against the US dollar this morning on weaker demand for the local note, amid renewed concerns over interest rate increases by the US Federal Reserve (Fed) next year.

At 9.11 am,  the local note stood at 4.1650/1700 against the US dollar from 4.1640/1680 at Friday’s close.

A dealer said although the Fed had hinted that it might slow down the pace of rate increases next year, from three projected, traders were still cautious, as this would mean that interest rates hike were still possible.

“Any rates hike by the Federal Reserve will have a negative impact on regional currencies, including the Ringgit,” he added.

Meanwhile, against other major currencies, the ringgit traded lower except against the pound, with the local note higher at 5.3020/3105 from 5.3116/3184 last Friday.

It weakened against the Singapore dollar to 3.0386/0434 from 3.0385/0434, declined against the Japanese yen to 3.7035/7090 from 3.6899/6937, and was weaker against the euro at 4.7527/7601 from 4.7320/7373.