PETALING JAYA: The ringgit ended higher against the US dollar yesterday as the Federal Reserve (Fed) maintained its benchmark interest rate but signalled that the rate-cutting narrative remained on track.
The local note gained 0.33% to RM4.4215/4270 from Wednesday’s close of 4.4330/4400.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Fed remained unfazed about the interest rate outlook despite navigating heightened policy uncertainties, particularly concerning the impact of import tariffs.
“The Fed’s latest macroeconomic projections reaffirm their outlook of two rate cuts in 2025, 2026, and 2027, consistent with December’s forecast.
“This reinforces greater clarity on monetary policy direction, with no deviation from the planned course,” he told Bernama.
