Ringgit ends higher against US dollar

KUALA LUMPUR: The ringgit ended higher against the US dollar today in tracking the performance of most Asian currencies, after the greenback retreated on the less hawkish statement from the Federal Reserve (Fed) and despite the US interest rate increase, dealers said.
At 6pm, the local note was quoted at 3.9120/9150 against the US dollar compared with Wednesday's 3.9240/9270.
At its March 20-21 monetary meeting, the US central bank raised the rate by 0.25% to a target range of 1.5% to 1.75%.
FXTM Global Head of Currency Strategy & Market Research, Jameel Ahmad said the ringgit has remained resilient against the greenback, which depreciated nearly 0.4%.
"Investors have already priced in the rate increase, but, confidence in the US dollar weakened when the Fed indicated it was not planning to raise US interest rates four times this year.
"For as long as the Fed's expectations are priced into the market, and investors largely expecting three US interest rate rises in 2018, there is no reason to be concerned over what impact a US interest rate hike would have on the ringgit," he added.
Meanwhile, MIDF Research Chief Economist, Dr Kamaruddin Mohd Nor told Bernama, the ringgit was also getting traction against US dollar on the back of firm crude oil prices which had inched near the US$70 per barrel.
"At this juncture, various factors are confluencing to support the ringgit. Ongoing negative sentiment pertaining to the US dollar such as a trade war, budget deficit and deepening administrative crisis, has also lent support to the local currency," he added.
However, the ringgit traded mostly lower against a basket of major currencies, except the Singapore dollar.
It slipped versus the euro to 4.8243/8299 from 4.8171/8224 on Wednesday and was lower against the yen at 3.7028/7074 from 3.6907/6946.
The local currency depreciated against the British pound at 5.5312/5370 from 5.5152/5210, but improved against the Singapore dollar to 2.9735/9770 from 2.9752/9788. — Bernama