Ringgit retreats vs greenback on technical correction.

KUALA LUMPUR, Sept 23: A technical correction saw the ringgit retreat versus the US dollar in early trade today after yesterday’s brief gain.

At 9.15 am, the local unit declined against the greenback to 4.1140/1190 fromThursday’s 4.1060/1110 closing.

A dealer said the outlook for the local note against the greenback was still positive after the US Federal Reserve (Fed) cut the longer-term rate view at its two-day meeting.

“Besides leaving its target rate for overnight lending unchanged at the end of its two-day meeting on Wednesday, the Fed also projected a less aggressive rise in rates next year and in 2018, and cut its longer-run interest rate forecast to 2.9 per cent from 3.0 per cent.

“Investors’ expectation for a US interest rate hike has now dwindled, and this scenario favours emerging currencies like the ringgit” he added.

The ringgit was traded mixed to firmer against other major currencies in early trade today.

The local note declined against the British pound to 5.3741/3827 from 5.3665/3735on Thursday.

Meanwhile, it rose against against the euro to 4.6106/6166 from 4.6114/6187, improved against the Singapore dollar to 3.0292/0336 from 3.0303/0362, and advanced against the yen to 4.0700/0770 from 4.0750/0816.

Source  : The Malaysian Times

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