Ringgit extends gains against US dollar as traders reassess Fed rate outlook

KUALA LUMPUR, Oct 30 — The Malaysian ringgit strengthened against the US dollar today as traders reevaluated the potential for an interest rate increase by the US Federal Reserve (Fed), according to an analyst. The Fed maintained its benchmark interest rate within the range of 3.75 per cent to 4.00 per cent on October 28. By 6 pm, the ringgit surged to 4.0555/0600 against the US dollar, up from yesterday's close of 4.0575/0620.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid indicated that the dollar-ringgit hovered around RM4.0425 in the morning session before climbing to RM4.0577, marking a 0.05 per cent gain against the dollar. The analyst attributed this shift to traders reassessing the probability of a rate hike, which resulted in the US Dollar Index (DXY) falling by 0.32 per cent to 101.710 points.

The ringgit, however, weakened against major currencies such as the British pound, the euro, and the Japanese yen, and also underperformed against several Asean peers. It rose against the Indonesian rupiah but fell against the Singapore dollar, Thai baht, and Philippine peso.