Tag: US Fed

Ringgit opens higher against US dollar on expectations of Fed rate hold

KUALA LUMPUR, JUNE 16 -- The ringgit opened higher against the US dollar on expectations that the United States Federal Reserve (US Fed) will maintain interest rates amid easing inflation concerns and falling US Treasury yields. At 8am, the local currency strengthened to 4.0455/0550 against the US dollar from 4.0485/0525 at yesterday's close. Bank Muamalat Malaysia Bhd Chief Economist, Mohd Afzanizam Abdul Rashid said crude oil prices continued to decline following growing expectations that a peace deal between the US and Iran on June 19 could potentially lead to the reopening of the Strait of Hormuz. He said West Texas Intermediate (WTI) and Brent crude oil prices fell 4.87 percent and 4.24 percent to US$80.75 and US$83.63 per barrel, respectively, while the 10-year US Treasury yield fell below 4.50 percent, reflecting concerns over easing inflation. "Therefore, such developments could influence members of the Federal Open Market Committee (FOMC) as they consider the interest rate decision on June 16 and 17," he told Bernama. Mohd Afzanizam said the ringgit has the potential to continue its strengthening today after closing 0.18 percent higher on Monday, supported by optimism over the possibility of a US-Iran peace deal, although investors remain cautious ahead of the signing of the deal expected to take place on June 19. At the opening of trading, the ringgit also strengthened against a basket of major currencies. The local currency rose against the Japanese yen to 2.5245/5306 from 2.5283/5309 at Monday's close, strengthened against the British pound to 5.4270/4398 from 5.4355/4409 and rose against the euro to 4.6891/7002 from 4.6987/7033. Against regional currencies, the ringgit traded mostly higher except against the Philippine peso which was almost unchanged at 6.69/6.71 compared to the 6.69/6.70 level when it closed on Monday. The ringgit also strengthened against the Thai baht to 12.4228/4601 from 12.4294/4474 at yesterday's close, rose against the Indonesian rupiah to 228.4/229.1 from 228.5/228.9 and rose against the Singapore dollar to 3.1534/1611 from 3.1580/1613. -- BERNAMA

KUALA LUMPUR, JUNE 16 — The ringgit opened higher against the US dollar on expectations that the United States Federal Reserve (US Fed) will maintain interest rates amid easing inflation concerns and falling US Treasury yields. At 8am, the local currency strengthened to 4.0455/0550 against the US dollar from 4.0485/0525 at yesterday’s close. Bank Muamalat […]