Ringgit Plummets Against US Dollar on Hawkish Fed Signals

The Malaysian ringgit closed lower against the US dollar on Monday due to ongoing hawkish sentiment surrounding US interest rates.

According to Dr Mohd Afzanizam, chief economist at Bank Muamalat Malaysia Bhd, indications from Federal Reserve officials, including Philadelphia Fed President Anna Paulson, suggest further rate increases are ahead.

This hawkish stance has led to higher US Treasury yields, with the two- and 10-year maturities rising by six basis points to 4.91% and 5.57%, respectively.

The ringgit's weakness against the US dollar also extended to other major currencies, including the euro, British pound, and Japanese yen.