KUALA LUMPUR: The ringgit extended its downtrend against the US dollar this morning due to the stronger US dollar Index (DXY), as the United States (US) Federal Reserve chair Jerome Powell reiterated his stance to keep raising interest rates in a bid to quell the rising inflation, an analyst said.
At 9 am, the local currency depreciated to 4.4020/4045 against the greenback from 4.3980/4010 at the close yesterday.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the DXY settled higher last night at 105.104 points.
He said during the European Central Bank panel session, Powell indicated that the US economy is in strong shape and is well-positioned to withstand the impact from the tighter monetary policy.
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