Ringgit Drops Against Greenback After Hawkish FOMC Decision

The ringgit opened lower against the US dollar on Thursday following a hawkish outcome from the FOMC meeting overnight. The local currency eased to 4.0855/0910 against the greenback from Tuesday's close of 4.0835/0880.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the highly anticipated FOMC decision was met with a high degree of hawkishness, signalling that the Fed remains committed to tightening monetary policy to achieve price stability.

The move has helped drive the US dollar higher, with the US dollar index (DXY) hovering at 100.322 points, while the two- and ten-year US Treasury yields rose seven and two basis points to 4.74 per cent and 5.02 per cent respectively.