Ringgit opens slightly lower after hawkish FOMC outcome
The local currency eases to 4.0855/4.0910 after the US Federal Reserve raised its benchmark interest rate by 25 basis points.
KUALA LUMPUR: The Malaysian ringgit slipped against the US dollar on Thursday following a hawkish decision from the US Federal Open Market Committee (FOMC) meeting the night before. At 8am, the local currency slipped to 4.0855/4.0910 against the greenback from Tuesday’s closing rate of 4.0835/4.0880. In a move marking the first interest rate increase since 2023, the US Federal Reserve (Fed) lifted its benchmark rate by 25 basis points to a range of 3.75% to 4.00%.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the ringgit's decline to the FOMC's staunch stance, indicating a more restrictive monetary policy to achieve price stability. Afzanizam noted that the Fed chair's comments during his press conference suggested a continued emphasis on price stability. The quarterly projection from Fed staff also indicated further rate hikes throughout the year.
As a result, the ringgit is anticipated to trade lower against the US dollar today, possibly settling around the 4.08 to 4.10 range.
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 opens slightly lower after hawkish FOMC outcome freemalaysiatoday.com
- Ringgit opens slightly lower vs US dollar after hawkish FOMC outcome nst.com.my
