Fed Tampering Talks Hurt Malaysian Ringgit
The Malaysian ringgit fell today as positive data from the United States added to speculations that the Federal Reserve will tamper quantitative easing. Such talks deterred traders from buying riskier currencies.
US jobless claims fell from 326,000 to 316,000 last week, while analysts have expected an increase. The consumer sentiment index unexpectedly jumped from 73.2 in October to 75.1 in November. The data suggests that the Fed may indeed reduce stimulus as early as December and such prospect hurts currencies of emerging markets.
USD/MYR rose from 3.2305 to 3.2325 as of 10:20 GMT today, while its daily high was at 3.2395.
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