KUALA LUMPUR: The ringgit opened flat against the US dollar on Thursday as investors turned a bit cautious after recent gains, despite growing speculation for a US interest rate cut.
At 8.05am, the local note stood edged slightly down to 4.2045/2160 versus the US dollar from Wednesday’s close of 4.2040/2085.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the cautious tone in the currency market was largely driven by some uncertainty over the US Federal Reserve’s (Fed) next move, despite increasing odds for a rate cut in September.
“The odds for a US interest rate cut are gaining momentum, especially following remarks from US Treasury Secretary Scott Bessent, who suggested that the Fed should reduce the Fed funds rate by 50 basis points at the next Federal Open Market Committee (FOMC) meeting,” he told Bernama.
© New Straits Times Press (M) Bhd
