Ringgit ends lower after US Fed hints at rate hike
KUALA LUMPUR: The ringgit ended lower against the greenback on the first trading day of September on rising expectations of a US interest rate hike after Federal Reserve (Fed) Chair Kevin Warsh’s recent speech at the Jackson Hole Symposium.
KUALA LUMPUR: On the first trading day of September, the ringgit fell against the US dollar due to rising expectations of a US interest rate hike. This was following remarks by Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium last Friday. The ringgit closed at 4.0370/0410 per US dollar, down from last Friday's closing rate of 4.0230/0270.
Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid attributed the ringgit's decline to Warsh's speech, which highlighted concerns over rising inflation. This could signal that monetary tightening is inevitable soon, particularly ahead of the Federal Open Market Committee's two-day meeting starting September 15.
The Jackson Hole symposium, held from August 27-29, was closely monitored by investors for any hints on the Fed's future interest rate decisions. The ringgit depreciated by 0.32% to RM4.0398 against the US dollar today, while other ASEAN currencies also weakened against the greenback. This depreciation could be influenced by the upcoming data points, such as the ISM Manufacturing Index, which is expected to be published tonight.
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- Ringgit ends lower after US Fed hints at rate hike freemalaysiatoday.com
