THE ringgit ended lower against the US dollar today amid a lack of catalysts.

At 6pm, the local note finished at 4.6195/6235 against the greenback from 4.6115/6185 at yesterday’s close.  

SPI Asset Management managing partner Stephen Innes said although the US Federal Open Market Committee (FOMC) is widely expected to pause interest rate hikes later, there is a strong likelihood that it will signal an interest rate hike next month, which is fairly bullish for the US dollar.

“But the broader discussion around the ringgit weakness is centred on the tight correlation to yuan, wide interest rate differentials and net investment outflows,” he said.

“Bank Negara Malaysia (BNM) is still keenly watching inflation as real rates remain negative and price controls could be adjusted.

“The ringgit could remain weak in the short run due to the poor China data, and BNM is far from considering cuts among Asian central banks”

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said technical indicators were pointing to a possible correction in the US dollar/ringgit, but so far, it has yet to materialise.

“Tonight’s FOMC decision is crucial as the US Federal Reserve will also reveal its latest quarterly forecast, which will tell the future path of the Fed’s fund rates,” he said.

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

It advanced against the Japanese yen to 3.3015/3046 from 3.3043/3096 yesterday, but depreciated broadly versus the British pound to 5.8423/8473 from Monday’s 5.7953/8041 and fell vis-a-vis the euro to 4.9918/9962 from 4.9823/9898 previously.

However, the local note traded mixed against other Asean currencies.

The ringgit was higher versus the Indonesian rupiah at 309.8/310.3 from 310.2/310.8 yesterday and went up against the Thai baht to 13.3192/3380 from 13.3442/3699.

It, however, eased against the Singapore dollar to 3.4433/4465 against 3.4399/4454 yesterday and declined against the Philippine peso to 8.26/8.27 from 8.24/8.26. – Bernama, June 14, 2023.