KUALA LUMPUR, 9 November 2022 – The ringgit strengthened against the US dollar for the first time in nine weeks, owing to a drop in the USD index (DXY) on negative US consumer confidence readings and lower housing prices.
According to a report issued today by Kenanga Investment Bank Bhd, the DXY was also pressured lower by a rebound in the British pound (GBP) as a result of the selection of Rishi Sunak as Prime Minister of the United Kingdom.
“However, the local note remained under pressure from the yuan’s weakening and the US’s better-than-expected third quarter (Q3) 2022 GDP,” Kenanga said.
The firm further added that, despite predictions of a 75 basis point (bps) rate increase from the Bank of England, the ringgit may decline as a result of the Fed’s ongoing supersized interest rate hike and the Bank of Japan’s ultra-loose monetary policy.
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