KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Wednesday, supported by a weaker US Dollar Index (DXY) as investors reassessed the outlook for US interest rates following signals that the Federal Reserve may adopt a less aggressive monetary policy stance.
At 8am, the ringgit rose to 4.0830/4.0880 against the greenback from Tuesday’s close of 4.0835/4.0880.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the DXY fell 0.40% to 102.810 points after US Federal Reserve Bank of New York president John Williams indicated that the Fed Funds Rate may not be raised in 2027, as inflation is expected to ease gradually towards the two per cent target.
“In addition, Williams suggested that the US economy is not overheating and therefore, it does not warrant an aggressive rate increase,” he noted.
