Ringgit opens lower against US dollar on Fed rate hike speculation | Money


At 9am, the local note rose to 4.2320/2340 against the greenback from 4.2290/2320 at Friday’s close. — Picture by Hari Anggara

LONDON, Dec 6 — The ringgit weakened against the US dollar at the opening today as investors’ expectations on the Federal Reserve rate hike remained intact and lent some support for the dollar, said an analyst.

At 9am, the local note rose to 4.2320/2340 against the greenback from 4.2290/2320 at Friday’s close.

Kenanga Investment Bank said the ringgit may strengthen momentarily near the 4.22 level as the 10-year US Treasury yield dropped to below the 1.35 per cent level on Friday.

“This is amid a disappointing November US jobs report. However, the continuous spread of the Omicron cases around the world will continue to unnerve investors, sparking a sell-off in risk-on assets,” the bank said in a note today.

Kenanga said a potential rise in the US inflation rate will continue to push the US dollar…

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