“The ringgit could strengthen, especially after the Fed indicated they could hike less and rely on tighter credit markets instead of rate hikes," said Innes of SPI Asset Management.
PETALING JAYA: Currency analysts believe the US Federal Reserve’s (Fed) tilt to the dovish side this week could signal sustained gains for battered emerging market currencies like the ringgit.
The Fed’s softer tone on rate prospects going forward gave foreign-exchange (forex) traders reason to shift out of the greenback and into other units despite having raised rates by another 25 basis points (bps) on Thursday.
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
