The Malaysian ringgit, as well as most other currencies, continued to gain against the US dollar at today’s trading session after yesterday’s policy minutes from the Federal Reserve hurt the appeal of the greenback.
The Fed minutes damped bets on an early interest rate hike from the US central bank, driving the dollar lower. This alleviated pressure on riskier currencies of emerging markets, including the ringgit, allowing them to rally. It is not clear yet if the rally persists considering that the Fed cited risks to the global economy as a potential reason for keeping monetary policy loose for a prolonged time, and this is bad for high-yield currencies, which are usually growth-related.
USD/MYR went down from 3.2728 to 3.2430 as of 11:23 GMT today, reaching the low of 3.2337 intraday.
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