Carian mengenai topik US interest rate

The ringgit continued its positive momentum this morning to open slightly higher against the greenback on the expectation of a US Federal Reserve downshift to a 25 basis points interest rate hike.

At 9 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 9.5 points better at 1,726.86 from Wednesday's close of 1,717.36.

The US Federal Reserve chair, Janet Yellen, had already hinted of further interest rate increases following a strong employment and inflation data released last Wednesday.

He said the decline in the ringgit's position was a source of concern to many, but the situation was outside the government's control.

Strong US economic data which showed US consumer confidence rose to the highest in more than 15 years in December would encourage the Federal Reserve to be more aggressive in its monetary policy.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said it was still too early to see the impact of the US interest rate hike on Malaysia's trade.

The ringgit was traded lower today against the US dollar, as the greenback rallied on expectations of a hike in US interest rates next month, dealers said.

Malaysia has to brace for an increased volatility in the financial markets, given the surge in the reverse capital flows in line with the expected US interest rate hike, as well as improved growth.

There is a chance borrowing costs could rise as soon as next month, but most bets are on a move just before the end of the year, or in February.

Asia shares inched ahead while the dollar slipped on Tuesday as a dearth of major data left markets with little to do but second guess whether the Federal Reserve will raise US interest rates.

However, as uncertainties lingered for the Malaysian economy in 2016, further downward pressure on the ringgit may persist due to low oil and commodity prices in the short-term.

The ringgit's volatility will next week be driven by uncertainty over a US interest rate hike amid continued weakness in commodities prices.

On the falling ringgit, economist said, it was hard to see a sustained rebound until commodity prices turned back up.

The euro struggled in Asia on Friday ahead of Greece's last-minute funding talks with its European creditors, while the dollar was supported by expectations of a US interest rate hike this year.