Ringgit opens marginally lower against US dollar

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KUALA LUMPUR (Dec 15): The ringgit opened marginally lower on Thursday morning (Dec 15), as investors weighed the impact of the US’ lower inflation data on the market, which could potentially lead to a devaluation of the US currency in the short term.


At 9.03am, the local note was traded at 4.3955/4050 against the US dollar, compared with 4.3900/3955 at the close on Wednesday.

ActivTrades trader Dyogenes Rodrigues Diniz said although the inflation data was lower than expected, the interest rate decision — an increase to 4.5% from 4.0% — was in line with expectations, and the US Federal Reserve’s statement points to a scenario of tight monetary policy well into 2023.

“Based on this, it is possible that the ringgit will register an upward correction over the next few days.

“The interest rate is the most important element in determining the price of money that circulates in an economy, because it determines how much the government will remunerate public debt securities,” he said in a note on Thursday.


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

The local note weakened against the pound to 5.4575/4692 from 5.4440/4509 at Wednesday’s close, and eased versus the euro to 4.6909/7010 from 4.6819/6878.

However, it improved against the yen to 3.2456/2531 from 3.2552/2608 at the close on Wednesday, and inched up versus the Singapore dollar to 3.2610/2688 from 3.2627/2675.-BERNAMA

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