KUALA LUMPUR (Sept 21): The ringgit slipped to a fresh all-time low against the US dollar at the opening on Wednesday (Sept 21), breaching the 4.5600 level due to lower oil prices, coupled with the strengthening of the greenback, a dealer said.
At 9am, the local currency had slid to 4.5640/5680 against the greenback from 4.5585/5595 at Tuesday’s close.
At press time, the benchmark Brent crude oil price had fallen 0.29% to US$90.36 (RM412.72) per barrel.
ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar remained bullish in anticipation of the interest rate decision by the Federal Open Market Committee in the US later on Wednesday.
He said the market expectation is that the interest rate will be increased by 75 basis points to 3.25% a year.
“If this forecast proves to be correct, it is likely that the dollar will retract against the ringgit at first, as the market has already priced in this scenario.
“On the other hand, if the US Federal Reserve raises the interest rate more than expected to 3.5% per year, the dollar could continue its upward movement against the ringgit towards the 4.6000 level,” he told Bernama.
Meanwhile, the ringgit was traded mixed against a basket of major currencies.
It fell against the yen to 3.1758/1788 from 3.1725/1734 at Tuesday’s close, and inched down versus the Singapore dollar to 3.2357/2388 from 3.2341/2353 previously.
However, the local note appreciated against the pound to 5.1893/1938 from 5.2049/2060 on Tuesday, and rose vis-a-vis the euro to 4.5462/5502 from 4.5608/5618 previously.-BERNAMA