Ringgit higher against US$ as Fed seen to keep interest rate unchanged

KUALA LUMPUR: The ringgit was slightly higher against the US dollar early Wednesday on better demand, as the market anticipates the US Federal Reserve (Fed) to keep interest rates unchanged.

At 9.10 am (0110 gmt), the ringgit stood at 4.0800/0850 against the greenback from 4.0820/0860 at the close on Tuesday.

A dealer said US consumer price data showed inflation remained low despite a tight labor market, which bolstered the likelihood of the Fed keeping rates unchanged.

“An unchanged rate bodes well for regional currencies because higher US interest rates would weaken Asian currencies,” he added.

Meanwhile, the ringgit traded mixed against other major currencies.

It rose against the Singapore dollar to 3.0084/0132 from 3.0094/0128 and was higher against British pound to 5.3370/3440 from 5.3899/3972.

It declined against the Japanese yen to 3.6654/6709 from 3.6646/6692 and depreciated against the euro to 4.6051/6124 from 4.6016/6066. – Bernama

Source : TheStar