As more investors shifted towards the safe haven currencies on United States’ commitment to lowering inflation by any means necessary, the local currency extended yesterday’s weaker performance to trade slightly lower against the greenback in the early session today.
At 9.15 am, the Malaysian Ringgit stood at 4.3230/3265 against the greenback from Thursday’s close of 4.3140/3185.
The US Federal Reserve (Fed) chair Jerome Powell’s recent statement that the fight against inflation is likely to last longer than initially thought, which could lead to higher US interest rates throughout 2023. Hence, this would result in investors shifting their funds to the safety of yielding assets such as US bonds.
On the other hand, the ringgit was appreciated against a basket of major currencies.
The local note inched up against the Singapore dollar to 3.2617/2648 from Thursday’s close of 3.2627/2664
The Ringgit also strengthened vis-a-vis the Japanese yen to 3.2847/2879 from 3.2967/3006 yesterday.
It appreciated against the British pound to 5.2369/2411 from 5.2381/2435 previously; gained strength against the euro to 4.6416/6454 from 4.6432/6480 on Thursday.