Ringgit shrugs off Fed rate whiplash
The ringgit opened nearly flat against the US dollar as markets digested the Federal Reserve’s unexpectedly hawkish rate cut, according to an analyst. At 8 a.m., it traded at 4.1935/2050, almost unchanged from Thursday’s close of 4.1935/1985.
Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, said investor caution persisted due to uncertainty over the Fed’s December rate decision and sparse economic data caused by the US government shutdown. He noted the easing of US-China trade tensions after their leaders met in South Korea, which led to lower tariffs on Chinese goods and renewed Chinese purchases of US soybeans. The ringgit slipped 0.20 percent on Thursday to close at 4.1960, briefly crossing the 4.20 mark. It may stay within the 4.19 to 4.20 band in the coming sessions.
At the open, the ringgit gained slightly against the Japanese yen and British pound but weakened against the euro. It rose versus the Singapore dollar, fell against the Thai baht, and held steady against the Indonesian rupiah and Philippine peso.
