BERNAMA – The ringgit ended lower against the US dollar as the first rate cut by the United States (US) Federal Reserve (Fed) is seen to be the primary driver for the risk-off sentiment.
At 6pm, the ringgit eased to 4.7165/7215 versus the greenback from Wednesday’s close of 4.7145/7200.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the local currency was fairly stable at around MYR4.712.
He said nevertheless, the timing of the first rate cut by the Fed will be the primary driver for the risk-off mode.
The incoming economic data from the US will also play a role should it continue to outperform the market expectation, as the Fed might not be in a hurry the cut the rates.
“As such, the ringgit is expected to see cautious trading in the near term,” he told Bernama.
The US retail sales data came in stronger than expected, supporting the Fed official’s recent hawkish tone that the central bank will keep rates higher for longer.
