KUALA LUMPUR: The ringgit opened lower against the US dollar today as the greenback advanced after the US Federal Reserve System (Fed) left its interest rate unchanged at its meeting yesterday.
At 9am, the local unit was quoted at 4.1965/2005 against the US dollar from 4.1860/1890 yesterday.
Oanda Head of Trading Asia-Pacific, Stephen Innes, said Fed’s decision to maintain its interest rate forecast of one increase this year and three in 2018 could leave more room for the US dollar to rise further.
“However, I am not expecting a pullback of capital funds on Asia’s emerging market foreign exchanges as global growth remains solid,” he told Bernama.
Innes said the ringgit’s initial resistance was expected at 4.20 against the US dollar.
“The next target for the ringgit is at 4.10-15 level with topside resistance at 4.25 against the US dollar,” said Innes.
Against other major currencies, however, the ringgit was traded mostly higher.
The local note rose against the Singapore dollar to 3.1069/1108 from 3.1144/1177 on Wednesday and improved to 3.7302/7348 from 3.7597/7630 versus the yen yesterday.
Against the euro, it appreciated to 4.9846/9898 from 5.0278/0331 yesterday. It, however, fell against the British pound to 5.6611/6682 from 5.6712/6769 on Wednesday.– Bernama