Ringgit Opens Lower as US Dollar Gains Ground on Retail Sales Data | Money
KUALA LUMPUR, November 16 – The ringgit opened slightly lower against the US dollar as the greenback gained momentum amid October retail sales data in the United States (US) which are expected to rise 0.7% month-on-month, based on consensus estimates, an analyst said.
At 9am, the local note fell to 4.1630 / 1655 against the greenback of 4.1600 / 1630 at yesterday’s close.
Meanwhile, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the 10-year US Treasury yield had risen above the 1.60% level, suggesting that the bond market was anticipating the cycle. rate hikes could start in 2022.
In addition, the US dollar index (DXY) has reached more than 95 points since last week following the sharp rise in the consumer inflation rate, which reached 6.2% year-on-year in October. , he told Bernama.
Given the current scenario, Mohd Afzanizam expects the local rating to remain low for the day, trading in a range of RM 4.16 to RM 4.17.
“If US retail sales data turns out to be better than expected today, the dollar could remain high as it strengthens the case for an earlier rate hike by the US Federal Reserve,” he said. he declares.
Meanwhile, the local note traded mostly higher against a basket of major currencies, with the exception of the pound sterling where it had depreciated to 5.5847 / 5880 against 5.5794 / 5834 at the yesterday’s closing.
The ringgit rose against the Japanese yen to 3.6460 / 6482 from 3.6543 / 6569 at Monday’s close, surged against the euro to 4.7350 / 7378 from 4.7620 / 7654 previously, and fell against the euro to 4.7350 / 7378 appreciated against the Singapore dollar at 3.0769 / 0792 from 3.0790 / 0814 yesterday. – Bernama