KUALA LUMPUR: The ringgit ended the week on a lower note against the US dollar today amid a hawkish outlook by both the United States Federal Reserve (Fed) and European Central Bank (ECB).
The Fed and ECB sent risk sentiment into the tank, causing a flush out in risk assets, with traders trying to figure out where peak interest rates lie.
At 6pm, the local note was traded at 4.4220/4.4265 against the greenback compared with 4.4195/4.4260 at Thursday’s close.
SPI Asset Management managing director Stephen Innes said in a week that saw the broader market’s 2023 pivot hope dashed, investors were examining the overnight movement with great detail.
“Investors are determining if the collapse in risk sentiment was part of a larger and more complex darker economic issue or, with the significant risk events behind us, will they see calmer waters heading towards the year end?” he told Bernama.
Amid the situation, he said that for the ringgit, hopes for a much better performance could be cloudy, especially given the growing uncertainty over China reopening with Covid-19 cases skyrocketing.
Meanwhile, the ringgit traded mostly higher against a basket of major currencies.
The local note rose against the British pound to 5.3705/5.3760 from 5.4410/5.4521 at yesterday’s close and was marginally better against the Singapore dollar to 3.2531/3.2569 versus 3.2554/3.2625 yesterday.
It gained slightly against the Japanese yen to 3.2230/3.2265 from 3.2296/3.2364 yesterday but eased versus the euro to 4.6926/4.6974 from 4.6845/4.6940 previously.