Ringgit rebounds as US Fed turns dovish

  • Forex
  • Friday, 7 Dec 2018

KUALA LUMPUR: The ringgit rebounded from yesterday's loss to open slightly higher against the US dollar today, as the greenback weakened, amid dovish US Federal Reserve's interest rate hike expectations.

At 9.01 am,  the local note was traded at 4.1610/1660 against the US dollar from Thursday's close of 4.1620/1670.

A dealer said fading expectations on more interest rate hikes took place after Fed Chairman Jerome Powell hinted that the Fed might slow down the pace of rate increases next year, from three projected in September.

“This has had a positive impact on emerging market currencies like the ringgit,” he said, adding, the steadier crude oil prices also supported the ringgit's performance.

According to the dealer, investors are still keeing their eyes on new data, including the US Unemployment Rate to be released later today, and the China trade data tomorrow, for clearer investment direction.

At the opening bell, the ringgit, however, traded mostly lower against other major currencies, except the Japanese yen.

It weakened against the Singapore dollar to 3.0386/0427 from 3.0362/0409 on Thursday, slipped against the euro to 4.7323/7388 from 4.7197/7262 and edged down against the pound to 5.3173/3258 from 5.3016/3096.

However, vis-a-vis the yen, the ringgit climbed to 3.6918/6965  from 3.6953/6007. - Bernama