Ringgit continues fall against US dollar ahead of BNM's OPR decision

Photo by Zahid Izzani Mohd Said/The Edge

Photo by Zahid Izzani Mohd Said/The Edge

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KUALA LUMPUR (Nov 3): The ringgit opened lower against the US dollar for the sixth consecutive day on Thursday (Nov 3), as traders remained cautious ahead of Bank Negara Malaysia’s (BNM) decision on the overnight policy rate (OPR), a dealer said. 

At 9am, the local currency had fallen to 4.7410/7460 against the greenback, from Wednesday's close at 4.7360/7400.

ActivTrades trader Dyogenes Rodrigues Diniz said investors are now awaiting the decision on Malaysian interest rates to be announced later on Thursday. The rate is expected to rise from 2.5% to 2.75%.

Besides that, the ringgit's movement was also influenced by the US Federal Reserve's (Fed) announcement of another interest rate increase and signals of more smaller increases ahead.

The Fed raised the benchmark borrowing rate by 0.75 percentage points, from 3.25% to 4%, on Wednesday. 

At a press conference, Fed chair Jerome Powell hinted at the stance the US central bank would adopt in the future.

"Powell said he still does not see elements that would warrant a pause in the interest rate increase, but that more concrete decisions will be taken in the next meeting in December," Diniz said. 

Back home, the ringgit was traded higher against a basket of major currencies. 

The local note appreciated against the euro to 4.6566/6615 from 4.6910/6950 at Wednesday’s close, and improved vis-a-vis the Singapore dollar to 3.3456/3496 from 3.3551/3584.

It went up versus the pound to 5.4019/4076 from 5.4445/4491, and increased against the yen to 3.2169/2205 from 3.2185/2214.