Ringgit rises on stronger odds of US rate cut
KUALA LUMPUR: The ringgit opened firmer against the US dollar on Friday, extending gains, after US economic data strengthened expectations of an imminent interest rate cut at the Federal Reserve’s upcoming policy meeting, an economist said.
At 8 am, the local note rose to 4.2205/4.2405 against the greenback from yesterday’s close of 4.2340/4.2385.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said US initial jobless claims increased more than expected to 226,000 last week, above market forecasts of 221,000.
He said the increase marked a second consecutive weekly rise, supporting views that signs of labour market weakness are emerging, even though federal open market committee members believe more data is needed before their September meeting.
“Notwithstanding that, the US Dollar Index fell 0.09% to 98,084 points as the odds of a September rate cut are rising,” he told Bernama.
–Bernama
