Uninspiring start to the day for Bursa and the ringgit

Uninspiring start to the day for Bursa and the ringgit

Stock and forex market traders stay cautious as they await word on interest rate hike in the US.

KUALA LUMPUR:
Investors stayed at the sidelines this morning as they awaited word on interest rate hike from the US, leaving both Bursa Malaysia and the ringgit to begin the day lower.

The federal open market committee (FOMC) of the US Federal Reserve meets today and tomorrow, during which it will decide on whether or not an increase in the interest rate is necessary to curb inflation and, if so, by how much.

The markets have more recently been anticipating a 25 basis points (bps) rise, compared with a 50bps increase expected weeks earlier.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) opened the day at 1,493.79, which was 5.60 points lower than yesterday’s close of 1,499.39.

It fell further in early trade to settle at 1,490.93 just six minutes after opening.

The ringgit also slipped in early trade against the US dollar ahead of the FOMC meeting.

At 9.05am, the ringgit stood at 4.2450/4.2500 against the greenback compared with 4.2410/4.2460 at yesterday’s close.

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