Ringgit ends lower versus US dollar on Nov 16

Ringgit ends lower versus US dollar on Nov 16
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KUALA LUMPUR (Nov 16): The ringgit closed lower against the US dollar on Tursday (Nov 16), as expectations for a Federal Reserve (Fed) rate hike continued to support the greenback, a dealer said. 

At 6pm, the local note slipped to 4.1645/1680 versus the greenback from 4.1600/1630 at Monday (Nov 15)’s close.

In a note, Hong Leong Research said the ringgit opened little changed at 4.1620 against its US counterpart on Tuesday; hence it was “neutral to slightly bullish” on the US dollar/ringgit pair this week, as the Fed rate hike expectations and cautious market sentiments may still keep the greenback’s strength intact.

“With negative momentum in the US dollar/ringgit pair also reducing, it is suggesting the likelihood of some upward moves,” it noted.

 ActivTrades trader Dyogenes Rodrigues Diniz said the United States (US) Treasury secretary Janet Yellen’s suggestion that the Fed should not allow inflation to return to 1970s levels might prompt the central bank to raise interest rates earlier than expected in 2023.

“This could cause the US dollar to enter a very strong upward momentum.

“From a technical point of view, if the US dollar and ringgit pair broke the resistance level at 4.1580, it could rise to 4.1900 in a few days,” he told Bernama.

Meanwhile, the ringgit was traded higher against a basket of major currencies except the British pound.

The local currency strengthened versus the Japanese yen to 3.6464/6497 from 3.6543/6569 on Monday, rose against the euro to 4.7313/7353 from 4.7620/7654 and increased against the Singapore dollar to 3.0755/0783 from 3.0790/0814.

However, the ringgit eased vis-a-vis the British pound to 5.6050/6097 from 5.5794/5834 on Monday.