The ringgit fell to RM4.71 against the US dollar

KUALA LUMPUR: The ringgit closed lower against the US dollar on Friday as the US dollar index (DXY) rose again above 105 points and as the Bank of Japan (BOJ) kept interest rates on hold, analysts said.

Bernama reports, at 6pm, the ringgit fell to 4.7190/7225 against the US dollar from 4.7070/7110 yesterday.

Bank Muamalat Malaysia Bhd’s Chief Economist, Dr Mohd Afzanizam Abdul Rashid, said today’s focus was on the BOJ’s monetary policy decision and the market appeared to be disappointed by the lack of information by the Japanese central bank on its quantitative tightening plans.

“The US dollar/Japanese yen pair rose to over 158 yen before settling around 157.75 yen.

“The BOJ’s latest decision will definitely have a positive impact on the US dollar because the US Federal Reserve (Fed) is seen as the only major central bank that is not in a rush to cut interest rates,” he told Bernama.

He said, DXY rose 0.29 percent to 105.503 points and subsequently the ringgit remained weak.

At the close of trading today, the ringgit traded mostly higher against several major currencies.

The local unit rose against the euro to 5.0418/0455 from 5.0840/0884 at Thursday’s close, rose against the pound to 5.9955/9999 from 6.0160/0211 but slipped against the yen to 3.0046/0072 from 2.9945/9972 previously.

In the meantime, the ringgit is traded mostly high compared to currencies in ASEAN countries.

The ringgit rose against the Indonesian rupiah to 287.5/287.8 from 289.2/289.6 at Thursday’s close, strengthened against the Thai baht to 12.8328/8475 from 12.8386/8540 and rose against the Singapore dollar to 3.4857/4886 from 3.4887/4920 previously.

However, it fell against the Philippine peso to 8.04/8.05 from 8.03/8.04 previously.