KUALA LUMPUR – The ringgit continued its downtrend against the US dollar today on weaker buying interest as investors digested the latest signals from the US Federal Reserve (Fed), dealers said.
At 6pm, the local unit stood at 4.2740/2790 against the greenback from Thursday’s close of 4.2650/2700.
The Fed wrapped up a two-day meeting on Wednesday and raised the benchmark interest rate by 0.25 per cent to 1.25%.
Mercury Securities Sdn Bhd Research Head, Edmund Tham said normally when an interest rate hike is announced by the Fed, funds would likely flow out from emerging markets.
“However, the ringgit is still seen sustaining its position at the moment as crude oil prices recover,” he told Bernama.
The ringgit traded mostly lower against a basket of major currencies.
It fell against the Singapore dollar to 3.0893/0933 from 3.0850/0890 yesterday but improved against the yen to 3.8394/8442 from 3.8614/8653.
It eased against the British pound to 5.4549/4617 from 5.4230/4285 and declined against the euro at 4.7741/7801 from 4.7688/4746.