The US Fed rate hike and how it affects Bangladesh

The US Federal Reserve has raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4.00%. This move is aimed at curbing persistent inflation, driven by energy shocks, tariff spikes, and other factors. According to the Dhaka Tribune Business, the rate hike was made despite political pressure from US President Donald Trump.

The rate hike has had an impact on currencies in other countries. The Mexican peso, for example, has depreciated and was on track for its worst weekly performance since March, according to Mexico News Daily. The peso weakened to 17.32 to the dollar on Friday morning and hovered at 17.229 to the dollar by 2:00 p.m., down nearly 6 centavos from Thursday’s close.

The ringgit, the currency of Malaysia, is also expected to be affected, according to Malay Mail. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit is likely to remain range-bound against the US dollar, with a forecast trading range of between RM4.06 and RM4.09 next week.

Brief written by urgent.news from Dhaka Tribune Business, Malay Mail, Mexico News Daily — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.