Ringgit ends lower after US Fed hints at rate hike
Markets expect the Fed's inflation concern to make near-term monetary tightening almost inevitable at the September FOMC meeting, says analyst.
KUALA LUMPUR: The Malaysian ringgit closed lower against the US dollar on the first trading day of September, as investors anticipated a potential interest rate hike from the Federal Reserve (Fed). The currency fell to 4.0370/4.0410 against the greenback by 6pm, down from last Friday's close of 4.0230/4.0270. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the currency's decline to Kevin Warsh's speech at the Jackson Hole Symposium last Friday.
Warsh's concerns over inflation suggested that monetary tightening was almost inevitable in the near term, particularly during the Federal Open Market Committee's (FOMC) meeting starting September 15. The ringgit's depreciation by 0.32% to RM4.0398 also followed other Asean currencies weakening against the US dollar. Market participants are expected to closely monitor the upcoming ISM Manufacturing Index data, with consensus estimates predicting a figure of 55.2 points for August, compared to 55.6 points in July.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Ringgit ends lower after US Fed hints at rate hike freemalaysiatoday.com
- Ringgit ends lower after US Fed hints at rate hike nst.com.my
