KUALA LUMPUR (April 27): The ringgit opened at 4.0977 against the US dollar in morning trade today as investors weighed the outlook of the US dollar ahead of the US Federal Reserve’s monetary policy decision today.
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At the time of writing today, the ringgit was traded at 4.0980 against the US dollar after the exchange rate closed at 4.0977 yesterday.
Overnight, it was reported that the Federal Open Market Committee of the Federal Reserve, which is also referred to as the Fed, ends its two-day meeting on Wednesday and while no major policy changes are expected, investors will pay close attention to comments from chairman Jerome Powell.
It was reported that Powell is likely to face questions over whether an improving labour market and rising coronavirus vaccinations warrant a withdrawal of monetary easing. “Most analysts though expect him to say such talk is premature, which could put downward pressure on Treasury yields and the dollar,” Reuters reported.
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It was reported that the dollar rose from an eight-week low against the euro on Monday, also gaining against major currencies such as the yen and Swiss franc, with investors consolidating positions ahead of the Federal Reserve’s monetary policy meeting this week.
It was reported that the dollar has fallen nearly 3% since late March as U.S. Treasury yields, which had risen this year and supported the greenback, traded in narrow ranges.
“Dollar bears are treading a bit carefully ahead of the Fed decision,” Joe Manimbo, senior market analyst at Western Union Business Solutions was quoted as saying.-The Edge Market