The ringgit opened higher against the US dollar on Thursday after the US Federal Open Market Committee (FOMC) opted to keep the Federal Funds Rate (FFR) steady at 5.50 per cent, which further strengthens the local note.
At 9 am, the ringgit rose to 4.7070/7105 against the greenback from Thursday’s close of 4.7335/7400.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the FOMC decision suggested that both US businesses and consumers are facing challenges in meeting their debt obligations, potentially leading to a deterioration in their repayment patterns if not addressed promptly.
“Consequently, a cut in the FFR is warranted and that could weaken the US dollar. This could bolster the value of the ringgit.
“With this in mind, we are reiterating our forecast for the US dollar to ringgit exchange rate to reach RM4.50 by the end of the year,” he told Bernama.
— Bernama
