Ringgit strengthens on expectations of US Fed rate cut
The ringgit opened firmer against the US dollar on Friday as traders shied away from the greenback amid growing anticipation of an interest rate cut by the US Federal Reserve (Fed), said an analyst.
KUALA LUMPUR: The ringgit opened firmer against the US dollar on Friday as traders shied away from the greenback amid growing anticipation of an interest rate cut by the US Federal Reserve (Fed), said an analyst.
At 8am, the ringgit rose to 4.2340/2580 against the greenback, compared to Thursday's close of 4.2465/2510.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Fed Governor Christopher Waller suggested the central bank cut interest rates this month, and that it should not wait for the labour market to deteriorate before doing so.
Mohd Afzanizam added that investors remain cautious amid concerns whether countries can secure concessions before the new US tariffs take effect on Aug 1.
Read More: Here