Ringgit lower versus US dollar on buying support for greenback

Ringgit lower versus US dollar on buying support for greenback
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KUALA LUMPUR (Nov 11): The ringgit opened lower against the US dollar on Thursday (Nov 11) on better buying interest for the greenback.

At 9.06am, the local note had eased to 4.1600/1630 versus the greenback from 4.1525/1545 at Wednesday's close.

 ActivTrades trader Dyogenes Rodrigues Diniz said US inflation data (as measured by the Consumer Price Index) came in higher than expected at 4.6% against the forecast of 4.3%, thus becoming the main catalyst for the upward movement in the US dollar-ringgit pairing.

He said the annualised inflation of 4.6% in the US is the highest in 30 years due to the huge amount of money being poured into the financial market as a stimulus to fight the Covid-19 pandemic. 

“Also, the dovish policy adopted by the US Federal Reserve (Fed) since the beginning of the pandemic made the situation even worse. 

“With this inflation reading, the market understood that the Fed will likely have to raise interest rates earlier than expected in 2023,” he told Bernama.

From a technical standpoint, if the ringgit-US dollar breaks above 4.1600, it could rise to 4.1900 in some days, Diniz added.

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

It increased against the Japanese yen to 3.6469/6495 from 3.6683/6704 on Wednesday, and appreciated versus the Singapore dollar to 3.0726/0750 from 3.0816/0833 previously.

The local note increased vis-a-vis the British pound to 5.5744/5784 from 5.6208/6235 at Wednesday’s close, and rose against the euro to 4.7732/7766 from 4.8078/8101.