Ringgit continues slide against US dollar

Despite the Federal Reserve raising interest rates as expected, the ringgit still loses ground in early trading, sinking to 4.57 from 4.5550 yesterday. – The Malaysian Insight file pic, September 22, 2022.

THE ringgit extended its downtrend to open lower against the greenback today, weighed by declining oil prices and following the US central bank delivering a steep interest rate hike.

At 9am, the local currency fell to 4.57 against the greenback from 4.5550 at yesterday’s close.

The benchmark Brent crude oil price fell 0.5% to US$89.38 per barrel.

Oil prices continued to slide today after the US Federal Reserve hiked interest rates by 75 basis points to a range of 3%-3.25% - the highest level since 2008. 

“Oil prices were already trending down ahead of the (Fed) meeting and continued to decline further after the rate hike announcement as higher interest rates would translate to a stronger dollar,” a dealer said.

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

It rose against the Japanese yen to 3.1650 from 3.1656 at yesterday’s close and inched up versus the Singapore dollar to 3.2197 from 3.2243 previously.

The local note appreciated against the Sterling to 5.1217 from 5.1663 yesterday and rose vis-a-vis the euro to 4.4859 from 4.5227 previously. – Bernama, September 22, 2022.

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