Ringgit extends losses and opens lower against US dollar

At 9:15 am, the local currency stood at 4.4830/4860 against the greenback compared to Friday’s close at 4.4760/4795. —Photo Reuters

Monday August 22, 2022 10:00 MYT

KUALA LUMPUR, Aug. 22 – The ringgit opened lower against the US dollar today, extending its losses over the past week as more investors focus on the safe-haven currency on the possibility of a further rise. rate by the U.S. Federal Reserve (Fed), dealers said.

At 9:15 am, the local currency stood at 4.4830/4860 against the greenback compared to Friday’s close at 4.4760/4795.

In a note published today, MIDF Research said the ringgit depreciated 0.7% to RM4.478 on a week-over-week basis last Friday, although the decline was not as steep per against other major and regional currencies.

“The recent policy easing by the People’s Bank of China and, to some extent, slow growth in China have also led to the depreciation of the ringgit and regional currencies,” he said.

MIDF Research noted that minutes from the July 22 Federal Open Market Committee (FOMC) meeting indicated the Fed remained committed to bringing inflation back toward its long-term inflation target of 2.0%.

“The latest comments from Fed policymakers also indicated that another significant rate hike could be on the cards at the next FOMC meeting on September 22, 2022,” he added.

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

The local rating rose against the euro to 4.4951/4981 from 4.5069/5104 at Friday’s close and rose against the pound to 5.1949/1984 from 5.3126/3167 previously.

It also improved against the Japanese yen to 3.2642/2666 from 3.2767/2795 on Friday and appreciated against the Singapore dollar to 3.2152/2178 from 3.2225/2254 previously. — Bernama

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