THE ringgit closed higher against the US dollar today as the greenback retreated after lower-than-expected US Consumer Price Index data reinforced expectations that the Federal Reserve (Fed) is done hiking interest rates, a dealer said.

At 6pm, the ringgit rose to 4.6695/6755 against the greenback from yesterday’s close of 4.7165/7210.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the ringgit went up to as high as 4.6565 against the US dollar before settling at 4.6695 today.

He said the local currency is lingering close to its immediate support level at 4.6611.

“Beyond this point, the next support level would be at 4.5778. We believe there is scope for further ringgit appreciation,” he said.

“However, the Federal Open Market Committee (FOMC) meeting on December 12 and13 will be closely monitored as markets are in search for more clues on the future path of interest rates.”

He said thus far, yields on short-dated securities such as the three-month and two-year US Treasuries are stubbornly higher at 5.37% and 4.84% respectively, compared to 4.44% for the 10-year Treasury.

“Bond markets are still not convinced that the Fed would pivot anytime soon as short-term rates always reflect central bank’s actions. Therefore, December’s FOMC would be the key event to look at to gauge 2024 US interest rates,” he said.

At the close, the ringgit was traded mostly lower versus a basket of major currencies.

It advanced against the Japanese yen to 3.1049/1091 from yesterday’s close of 3.1091/1123, eased against the euro to 5.0669/0734 from 5.0570/0619 and fell vis-a-vis the British pound to 5.8187/8261 from 5.8032/8087.

The local note ended mixed against other Asean currencies.

It appreciated against the Singapore dollar to 3.4615/4662 from 3.4675/4713 yesterday and was higher against the Philippine peso at 8.36/8.38 from 8.41/8.42.

However, the ringgit weakened against the Thai baht to 13.1713/1935 from 13.0760/0946 yesterday and eased vis-a-vis the Indonesian rupiah to 300.5/301.1 from 300.4/300.9. – Bernama, November 15, 2023.