KUALA LUMPUR (Aug 26): The ringgit eased against the US dollar in the early session on Friday (Aug 26), due to a lack of catalysts, said a dealer.
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At 9.22am, the local currency was pegged at 4.4730/4760 against the greenback, from Thursday’s close at 4.4700/4730.
ActivTrades trader Dyogenes Rodrigues Diniz said after a long bullish move that started in March, the US dollar could show the first signs of what could be the start of an important bearish trend ahead of the speech by US Federal Reserve (Fed) chair Jerome Powell at Jackson Hole later on Friday.
He noted that the market is a little apprehensive about Powell’s comments because there seems to be some disagreement among Fed directors on the size of the next interest rate hike, which is to be announced in the next meeting in September.
“Depending on what message Powell delivers, the US dollar/ringgit [pair] could fall to as low as 4.4230 and 4.3600 within a few weeks,” Diniz said in a note on Friday.
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Meanwhile, the ringgit was traded higher against a basket of major currencies.
The local note appreciated against the euro to 4.4582/4612 from Thursday’s close at 4.4673/4703, and was slightly higher against the Singapore dollar at 3.2171/2197 from 3.2174/2201 previously.
It also advanced against the pound to 5.2862/2897 from 5.2902/2938 on Thursday, and improved against the yen to 3.2736/2760 from 3.2750/2774.-BERNAMA