Ringgit slips as Fed officials signal more rate hikes

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that recent statements from US Federal Reserve officials, notably Philadelphia Fed president Anna Paulson, have kept the foreign-exchange market under pressure. US Treasury yields for two-year and ten-year bonds climbed six basis points to 4.91% and 5.57%, respectively, raising expectations that the Fed will raise its policy rate at the upcoming October FOMC meeting.

In response, the ringgit slipped to a range of 4.0805-4.0845 against the US dollar, down from the previous close. The currency also fell against the euro, British pound and Japanese yen, while remaining flat against the Philippine peso and slightly stronger versus the Indonesian rupiah and Thai baht. Overall, the ringgit ended the session lower against a basket of major currencies.