The Ringgit screwed by Fed’s Decision to raise interest rates


December 16, 2016

The Ringgit screwed by Fed’s Decision to raise interest rates–Wake Up Finance Minister Najib Razak

by Bernama

The ringgit opened lower for the last trading day of the week, dampened by external sentiment, a dealer said.

At 9am, the ringgit was traded at 4.4660/4690 versus the US dollar from 4.4440/4480 at yesterday’s closing.

The strengthening of the US dollar due to the recent announcement by the Federal Reserve on interest rates has affected Asian currencies as well as emerging market currencies, and Malaysia is not excluded.

FXTM Research Analyst Lukman Otunuga said from a technical standpoint, the dollar is heavily bullish on the daily timeframe with yesterday’s hawkish surprise sending the US Dollar Index to fresh 14-year highs above 102.50.

Image result for A Depressed Najib Razak

“The dollar’s strength could become a key theme in 2017 as the improving sentiment towards the US entices bullish investors to propel the greenback higher,” he said in a statement.

Against a basket of major currencies, the ringgit traded higher. Vis-a-vis the Singapore dollar, the ringgit rose to 3.0945/0983 from 3.1049/1096 and versus the yen, it improved to 3.7758/7796 from 3.7846/7894 yesterday.

Against the British pound, the local currency appreciated to 5.5320/5380 from 5.5873/5949, while against the euro it rose to 4.6518/6563 from 4.6851/6921.

– Bernama

 

5 thoughts on “The Ringgit screwed by Fed’s Decision to raise interest rates

  1. Don’t blame the Feds on the decline of the RM. The Feds have not adjusted their rates in a long long time. Blame it on the speculators and money managers who seek the best returns for their investment. A quarter percent and funds scurry back to the US. Why is that?

  2. Actually, it was screwed BEFORE the hike. It’s more accurate to say screwed by Trump with Fed expected hike. So the problem is both more Fed hike and Trump policies will move it. Najib NEED to be friends with Trump so what are they going to sell us out to get that friendship and will it even work? Maybe get Petronas to invest in risky oil projects or infrastructure projects for jobs?

    For sure no matter what, WE ARE SCREWED.

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