Ringgit slides further against US dollar

The ringgit continued to decline against the US dollar at the opening today with the dollar supported by recent statements from US Federal Reserve chair Jerome Powell on taming US inflation.

US inflation is currently rising at its fastest pace in more than 40 years, a dealer said. 

At 9am, the local currency slipped to 4.6140/6155 against the greenback from yesterday’s closing of 4.6100/6120.

ActivTrades trader Dyogenes Rodrigues Diniz said one of the most effective ways to combat high inflation was to raise interest rates, which could have a negative impact on the economy.

“With higher interest rates, households are expected to spend less, thus reducing economic growth,” he said in a note today.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

It went up further against the euro to 4.4165/4180 from 4.4321/4340 at yesterday’s closing, and appreciated against the Japanese yen to 3.1876/1890 from 3.1925/1941 previously.

The local note also rose versus the Singapore dollar to 3.2031/2045 from 3.2099/2117 on Tuesday and strengthened against the British pound to 4.9328/9344 from 4.9770/9791.