Ringgit rises as Fed minutes signal US interest rate cuts ahead

 

KUALA LUMPUR: 

The ringgit ended higher against the US dollar today, buoyed by the US Federal Reserve’s (Fed) latest meeting minutes, which were perceived as less hawkish than anticipated and kept the rate-cutting narrative alive.

SPI Asset Management managing director Stephen Innes attributed the US dollar’s easing to the Fed’s Nov 6-7 meeting minutes, with Fed officials seeing more rate cuts ahead, albeit gradually.

The minutes revealed that Fed officials are cautiously weighing interest rate change, favouring gradual adjustments to support economic growth while mitigating the risk of a sharp rise in unemployment.

“The ringgit experienced a notably calmer day, rebounding after turbulence caused by US president-elect Donald Trump’s tariff threats yesterday.

“This stability was further bolstered by a calm US bond market, which reassured global investors that Trump’s tariff remarks were likely a strategic warning aimed at specific nations,” he told Bernama.

At 6pm, the local currency appreciated to 4.4440/4.4465 against the US dollar, compared to yesterday’s close of 4.4560/4.4600.

The ringgit traded mostly higher against a basket of major currencies.

It gained versus the British pound to 5.5962/5.6044 from 5.6021/5.6071 and advanced against the euro to 4.6691/4.6759 from 4.6824/4.6866 yesterday.

However, it fell vis-a-vis the Japanese yen to 2.9311/2.9356 from 2.8952/2.8980.

The local unit also traded mostly higher against Asean currencies.

It edged up against the Singapore dollar to 3.3055/3.3106 from 3.3066/3.3098, ticked up versus the Thai baht to 12.8342/12.8597 from 12.8393/12.8564, and climbed against the Indonesian rupiah to 278.6/279.1 from 279.6/280 previously.

The local currency dipped against the Philippine peso to 7.56/7.57 from 7.55/7.56. - FMT