Ringgit rises against major currencies, slips vs US dollar

KUALA LUMPUR: The Malaysian ringgit exhibited a mixed performance against major currencies on Friday morning, strengthening against most but weakening against the US dollar as investors awaited the Fed's December policy meeting. By 8am, the currency slipped to 4.0780/4.0840 against the US dollar from 4.0765/4.0805 the previous close.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed this to the US Dollar Index's climb to 103.198 points, anticipating potential Fed rate hikes next month. Meanwhile, Brent crude oil prices surged 3.27% to US$95.79 a barrel, hinting at persistent inflationary pressures. Despite these factors, traders largely ignored increases in initial jobless claims and a decline in US home sales, focusing primarily on the Fed's rate decision expectations.

Analysts predict the ringgit will fluctuate between RM4.07 and RM4.08 against the US dollar today. The currency showed resilience against a basket of major currencies, strengthening against the euro, British pound, and Japanese yen. However, its performance against ASEAN peers and regional currencies was mixed, with some appreciation and others fluctuating or remaining unchanged.