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- A + A KUALA LUMPUR (Dec 9): The ringgit ended the final day of the trading week lower, once again touching the 4.40 mark against the US dollar due to worries about the global economic outlook and murky outlook on China’s economy, said an analyst. At 6pm, the local note eased to 4.4010/4080 against the greenback from 4.3960/4000 at Thursday’s close. On Dec 1, 2022, the local note strengthened to 4.4030/4100 against the greenback from the previous day’s close of 4.4420/4500. SPI Asset Management managing director Stephen Innes said Asia’s forex exuberance has been tempered by rising Covid-19 cases in China and scepticism of the force of reopening economic tailwinds that the current level of Asian risk assets implies. “The outlook for China looks pretty murky, given the medical community seems ill-prepared for the reopening. Hence, a surge in Covid-19 cases could negatively affect reopening efforts,” he told Bernama. According to an international news … [Read more...] about Ringgit slips at the close, touches 4.40 mark against US dollar

- A + A KUALA LUMPUR (Dec 10): The ringgit is expected to trade range-bound next week, as investors remain cautious ahead of the US Federal Open Market Committee (FOMC) meeting, said an analyst. SPI Asset Management managing director Stephen Innes believes investors are worried about the global economic outlook and that China's reopening might not offset global recession concerns. “In my view, the good news is that US inflation expectations are falling, and next week’s consumer price index (CPI) could very well support that view if it comes out softer, which could accelerate the US dollar sell-off,” he told Bernama. However, he said more positive follow-through is likely to be seen after the release of US CPI data, and as the US Federal Reserve downshifts to an expected interest rate hike of 50 basis points next week. “This will likely support the ringgit to trade in the range of 4.3850 to 4.4150,” he said. For the week just ended, the local note was traded … [Read more...] about Ringgit likely to see range-bound trading ahead of US FOMC meeting

- A + A KUALA LUMPUR (Dec 12): The ringgit opened flat against the US dollar on Monday (Dec 12), dampened by external factors, as markets were hedging for a hawkish US Federal Reserve (Fed) meeting outcome due to sticky inflation. At 9am, the local note was traded at 4.4090/4160 against the US dollar, from 4.4010/4080 at the close last Friday. SPI Asset Management managing director Stephen Innes said the ringgit was off to a shaky start this week, after the higher-than-expected reading last Friday of the US producer price index cast an ominous shadow, ahead of this week's key consumer price index data. “Higher US yields are negative for the ringgit, while the lack of mass Covid-19 testing in China adds an unwelcome layer of uncertainty over its Covid-19 case counts, which will invariably skyrocket and weigh negatively on the initial stages of the reopening. “So, I think a bit of a reality check is setting in on both the Fed and China fronts,” he told Bernama. … [Read more...] about Ringgit opens flat against US dollar on external pressure

- A + A KUALA LUMPUR (Dec 12): The ringgit closed lower against the US dollar on Monday (Dec 12), as the greenback strengthened ahead of interest rate decisions from multiple central banks. At 6pm, the local note was traded at 4.4150/4200 against the US dollar, compared to 4.4010/4080 at the close last Friday. SPI Asset Management managing director Stephen Innes said worries about a global recession ahead of potential rate hikes this week led to a weaker risk sentiment in the Asian market. “Local markets have been counting on China’s reopening, but that alone may not be enough to stave off a significant decline in exports to Western markets if a recession hits,” he told Bernama . Meanwhile, Bank Islam Malaysia Bhd chief economist Firdaos Rosli said that on a weekly basis, the ringgit was traded lower against the US dollar, as market participants were worried over the gloomy outlook on the global economy. He said investors remained cautious ahead of the … [Read more...] about Ringgit closes lower against US dollar ahead of potential rate hikes

- A + A KUALA LUMPUR (Dec 17): Bullish expectations for the ringgit would be put on hold next week, with the currency’s movement leaning towards the downside at between 4.42 and 4.44 against the US dollar, said an analyst. SPI Asset Management managing director Stephen Innes said given the hawkish tone of the US Federal Reserve (Fed) and European Central Bank (ECB) to end the week, risk could trade on a wobbly axis next week. "For the ringgit, where sentiment was buoyed by hopes for, at minimum, an early Fed pause [of interest rate hike] in 2023, it could be negative, especially given the growing uncertainty over China’s reopening with Covid-19 cases skyrocketing," he told Bernama . Meanwhile, Kenanga Research, in its Ringgit Weekly Outlook report, said the US Dollar Index may continue to be pressured below the 105 level due to the weaker-than-expected US retail sales reading and a hawkish pivot by the ECB. “Domestically, a stronger trade reading may also … [Read more...] about Ringgit to skew towards the downside against US dollar next week