Ringgit opens flat as markets digest Fed’s hawkish rate cut

KUALA LUMPUR: The ringgit opened almost flat against the US dollar as traders and investors reacted to the US Federal Reserve (Fed)’s unexpectedly hawkish interest rate cut on Thursday, an analyst said.

At 8am, the ringgit stood nearly unchanged at 4.1935/4.2050 against the greenback, compared with Thursday’s close of 4.1935/4.1985.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said market sentiment remained cautious as investors assessed how the Fed might set its benchmark rate in December, amid limited economic data caused by the US government shutdown.

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