The Malaysian ringgit fell today along with other Asian currencies as concerns about probability of tighter monetary policy in the United States were bothering investors, making them reluctant to invest in riskier assets of emerging markets.
While some high-beta currencies were ignoring the impact of the Federal Reserve policy announcement, many still felt the downside pressure and were unable to resist it. Stimulus tapering was expected and probably did not concern traders, but the forecast of higher interest rate was unexpected and shocked the currency market. The widening of yuan trading band and the subsequent depreciation of the Chinese currency also made speculators worried.
USD/MYR went up from 3.2987 to 3.3085 as of 17:34 GMT today, reaching the high of 3.3115 intraday.
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