- Malaysia Ringgit (MYR) falls to a 3-month low
- GDP data is on Friday and is expected to ease in Q3
- US Dollar (USD) rises against major peers
- Fed speakers & inflation data lift the USD
The US dollar-Malaysian ringgit (USD/MYR) exchange rate is rising for a third straight day. The pair rose 0.6% in the previous session, settling on Tuesday at 4.44340. At 22:00 UTC, USD/MYR trades +0.3% at 4.4480 and is in a range of 4.4370 to 4.4625.
The Malaysian ringgit was a standout loser among Asian currencies amid USD strength, and after third quarter, economic growth likely slowed. Equities in Kuala Lumpur also fell 0.4%.
Malasyia’s economy probably slowed modestly in the July to September period compared to the same period a year earlier. Strong consumption and construction likely helped to offset declining mining output. The GDP figure will be released on Friday; the Ringgit could trade cautiously until then.
Meanwhile, worries over trade tariffs on China are also impacting the Ringgit. Any economic weakness in China is often felt across Asia.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at 100.49 at the time of writing, up 0.07% after four straight weeks of losses.
The US dollar is rising across the board after US inflation ticked higher and Federal Reserve speakers adopted a more hawkish tone. The US dollar rose to a fresh 2024 higher against its major peers.
US inflation rose to 2.6% year over year, up from 2.4% in September. On a monthly basis, inflation came in at 0.2%. Meanwhile, core inflation held steady at 3.3%, in line with expectations.
Fed speakers warned of a cautious approach to cutting interest rates. While Fed officials acknowledged that progress had been made on inflation, they also said that it was still elevated and that it could rise further. Kansas City Fed President Schmid said it remains to be seen how much further interest rates will decline, pointing to a possibly higher nominal rate.
