KUALA LUMPUR, June 17 – The ringgit weakened further against the US dollar at the close today as the greenback rose sharply after the US Federal Reserve (Fed) advanced interest rate expectations .
At 6 p.m., the local note lost 235 basis points to 4.1390 / 1400 against the US dollar, from 4.1155 / 1180 at Wednesday’s close.
Jeffrey Halley, OANDA’s senior market analyst, said the overnight rally in the US dollar has also left many of the major currencies at attractive levels with further downside potential to come.
“Overall, overnight movements in the currency markets look worrisome, unless you’re bullish on the US dollar.
“However, we need to see today’s reaction from Europe and the United States to confirm whether we are seeing a medium-term shift in the outlook for the US dollar after the Federal Open Market Committee meeting. (FOMC).
“The year 2020/2021 has been marked by its many false dawns, and I would not rule out that possibility yet,” Halley said in a note.
On the home front, the national COVID-19 immunization program daily immunization tally showed a positive trend as it continued to exceed the target of 200,000 doses per day, with 204,839 additional doses administered yesterday .
“We hope this may continue to help support the ringgit and local sentiment as well as the expectation of better trade performance and foreign direct investment in the second quarter which is expected to come out soon,” an analyst told Bernama.
At the close, the ringgit strengthened against a basket of major currencies.
Local unit was better against the Singapore dollar at 3.0918 / 0930 versus 3.1032 / 1053 at Wednesday’s close and improved against the yen at 3.7389 / 7402 versus 3.7431 / 7453.
It rose against the British Pound to 5.7826 / 7840 from 5.8090 / 8126 yesterday and strengthened against the Euro at 4.9465 / 9477 from 4.9896 / 9927 previously. – Bernama