Ringgit records weekly decline against US dollar
Bank Muamalat's chief economist forecasts a range of RM4.07 to RM4.10 as expectations of further Fed rate increases support the dollar.
The ringgit's Friday-to-Friday performance showed a decline to 4.0845/0890 per US dollar, compared with 4.0565/0610 previously, despite gains against other major currencies and most ASEAN currencies.
Further pressure on the ringgit is expected as anticipated US Federal Reserve (Fed) interest rate increases underpin the dollar, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. He told Bernama his forecast range for the local currency was RM4.07 to RM4.10 against the dollar.
Mohd Afzanizam said investors were anticipating a sizeable December rate increase. Another focus was October's US retail sales data, due on Nov 17. Consensus expectations were for monthly growth of 0.2 per cent, compared with September's 0.8 per cent.
The ringgit's gains against major currencies took its yen quotation to 2.5549/5579, versus 2.5616/5646 previously. Sterling stood at 5.4046/4106, compared with 5.4304/4365, while the euro quotation improved to 4.5166/5216, versus 4.5315/5365.
Regional gains included the Thai baht at 12.0611/0833, compared with 12.0898/1105; the Philippine peso at 6.41/6.42, versus 6.43/6.44; and the Indonesian rupiah at 224.3/224.6, versus 224.2/224.6. In contrast, the Singapore dollar quotation weakened to 3.1729/1769, compared with 3.1657/1694.
