\KUALA LUMPUR, Jan 5 — The ringgit slipped further against the US dollar on the expectation that higher-for-longer interest rate narratives are likely to persist.
At 6 pm, the ringgit depreciated to 4.6525/6580 versus the greenback from Thursday’s close of 4.6330/6370.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was weaker against the US dollar today as the US labour market showed signs of strength, implying that higher-for-longer narratives on rates have legs.
“This was further amplified by the United States Federal Open Market Committee minutes which indicate that the Federal Reserve might cut rates towards the end of 2024,” he told Bernama.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
It rose vis-a-vis the British pound to 5.8891/8961 from 5.8964/9015 on Thursday, strengthened versus the euro to 5.0763/0823 from 5.0829/0873 yesterday, and appreciated against the Japanese yen to 3.2038/2078 from 3.2185/2215 previously.
The ringgit was traded mostly lower against Asean currencies.
It was slightly lower against the Singapore dollar to 3.4944/4988 from 3.4903/4936 at yesterday’s close and retreated versus the Philippine peso to 8.37/8.38 from 8.35/8.36.
The local currency depreciated versus the Indonesian rupiah to 299.8/300.3 from 299.0/299.4, while it rose against the Thai baht at 13.4001/4236 from 13.4500/4687.
— Bernama
