Ringgit Drops on Fed Stimulus Reduction Bets

The Malaysian ringgit fell today on concerns that probable stimulus reduction by the US Federal Reserve will spur investors to pull their money from emerging markets.
The two-day monetary policy meeting of the Fed ends today and it is expected that the US central bank will trim the monthly asset purchases by another $10 billion. Market analysts say that traders are already pricing in an interest rate hike. As a result, the ringgit fell today together with other Asian currencies, including the Indonesian rupiah.
USD/MYR went up from 3.2218 to 3.2336 as of 12:37 GMT today.

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