Ringgit ends higher as Fed rate hike expectations ease
At 6pm, the ringgit jumped 225 percentage in points (pips) to 4.0585/4.0630 versus the US dollar from last Friday’s close of 4.0840/4.0885.
The ringgit closed higher against the US dollar on Monday. It rose 225 percentage points to 4.0585/4.0630 from Friday's close of 4.0840/4.0885.
This increase was attributed to softer US economic data, which reduced expectations of a US Federal Reserve interest rate hike in September. According to Free Malaysia Today, lower US consumer price and producer price indices, as well as weaker jobs data, eased expectations of a potential rate hike.
The US economic data released last week showed a contraction in July Retail Sales by 0.6% month-over-month, and an annual rise of 5.0%, which marked a slowdown from the previous month. As a result, traders scaled back their expectations for near-term Federal Reserve rate hikes, with a 30.6% probability of a rate hike next month, down from 52.2% a week prior, according to the CME FedWatch tool.
Brief written by urgent.news from Free Malaysia Today, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- Dow Jones futures decline despite softening Fed rate hike expectations fxstreet.com
- Ringgit ends higher as Fed rate hike expectations ease freemalaysiatoday.com
