KUALA LUMPUR, June 16 — The ringgit was weaker against the US dollar in early trade today as the latter rallied after US Federal Reserve (Fed) announced the interest rate increase.
At 9am, the local unit stood at 4.2770/2800 against the greenback from 4.2650/2700 yesterday.
FXTM Research Analyst, Lukman Otunuga, said although the US dollar rallied after the statement release and Janet Yellen’s speech, the dollar index was still trading near a seven-month low.
“Fixed income traders are clearly unconvinced with the Fed’s hawkishness,” he said in a statement.
The Fed wrapped up a two-day meeting on Wednesday and raised the benchmark interest rate for the second time this year.
The ringgit was traded easier against a basket of major currencies except against the yen.
It weakened against the British pound to 5.4617/4673 from 5.4174/4250 yesterday and eased against the euro to 4.7693/7739 from 4.7597/4657 yesterday.
The ringgit fell further against the Singapore dollar to 3.0928/0961 from 3.0861/0908 yesterday, It, however, edged up against the yen to 3.8514/8545 from 3.8847/8903 yesterday.— Bernama