Ringgit rallies against greenback as traders reassess Fed rate outlook
The ringgit remained in positive territory as traders reassessed the likelihood of a US interest rate hike, pushing the US Dollar Index lower.
KUALA LUMPUR: The Malaysian ringgit experienced a rise against the US dollar on Friday, concluding the day higher as traders reconsidered the potential for an interest rate hike by the US Federal Reserve (Fed), according to an analyst. The Federal Reserve maintained its benchmark interest rate within the 3.75% to 4.00% range on October 28.
By 6pm, the ringgit strengthened to 4.0555/4.0600 compared to a previous close of 4.0575/4.0620. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid explained that the dollar-ringgit hovered around RM4.0425 during the morning session before climbing to RM4.0577, resulting in a 0.05% gain against the dollar. Rashid noted that traders are reassessing the chances of a rate increase, which has led to a 0.32% decline in the US Dollar Index (DXY) to 101.710 points.
The ringgit weakened against major currencies such as the British pound, euro, Japanese yen, and Indonesian rupiah during the day. It gained against the Singapore dollar and Thai baht, but slipped against the Philippine peso.
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.
