NewzThe expected decision to leave the benchmark interest rate in the 3.50%-3.75% range drew dissents from three of the 12 members of the policy-setting Federal Open Market Committee. KUALA LUMPUR: The ringgit opened higher against the US dollar, supported by the weaker greenback after the US Federal Reserve (Fed) kept interest rates steady at its latest Federal Open Market Committee (FOMC) meeting.At 8am, the local currency was higher marginally at 4.0850/4.0920 against the greenback from 4.0875/4.0915 at yesterday’s close.Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US dollar index (DXY) fell 0.57% to 100.842 points, as the US Fed decided to keep its target benchmark Federal Funds Rate between 3.50% and 3.75%.“The decision was not unanimous as 3 out of 12 voting members elected for a rate hike,” he noted.Following the US Fed decision, the US Treasury yield curve steepened as a result, with the two-year yield note falling 1.0 basis point to 4.27% while the 10-year yield rose 7.0 basis points to 4.68%.“During the press conference, the Fed chairman indicated that market rates have tightened, which implies that this will have an impact on the economy via higher cost of capital.“To some degree, it also indicates that the Fed appears to be adopting a wait-and-see attitude as to how inflation would behave going forward,” he said.Thus far, Afzanizam noted that the West Texas Intermediate (WTI) and Brent crude oil have gone up by 6.56% and 8.12% to US$84.46 per barrel and US$90.92 per barrel, respectively, as the US military is set to strike Iran after the US military base in Jordan was under attack.He added that, as such, the ringgit is expected to maintain its tight range, with some degree of appreciation against the US dollar.The ringgit traded lower against a basket of major currencies at the opening.It eased against the Japanese yen to 2.5015/2.5060 from yesterday’s close of 2.4982/2.5008, depreciated vis-a-vis the euro to 4.6843/4.6923 from 4.6561/4.6606, and declined versus the British pound to 5.4604/5.4698 from 5.4351/5.4405, previously.Meanwhile, the ringgit traded mixed against regional currencies.It weakened against the Singapore dollar to 3.1699/3.1755 from 3.1632/3.1666, and declined vis-a-vis the Thai baht to 12.2002/12.2266 from 12.1971/12.2138, previously.The local note edged up versus the Indonesian rupiah to 226.0/226.5 from 226.1/226.5 at the close yesterday and was flat against the Philippine peso at 6.65/6.67. Hong Kong’s monetary authority has maintained its base rate following the US Federal Reserve’s decision to keep its key rate unchanged.
The city’s base rate was kept at 4 per cent by the Hong Kong Monetary Authority (HKMA) on Thursday. Hours earlier, the US Federal Reserve also retained its target rate in the range of 3.5 per cent to 3.75 per cent, concluding its fifth Federal Open Market Committee (FOMC) meeting this year. The US stock market slumped on Wednesday with the Dow Jones down 1,152...
The Federal Reserve voted to keep interest rates unchanged, with three officials dissenting due to persistent inflation concerns. In our news wrap Wednesday, the Federal Reserve held interest rates steady but three Fed officials voted in favor of raising rates amid ongoing inflation concerns and the spike in energy prices due to the Iran war, President Trump unveiled a $22 billion overhaul of Washington Dulles International Airport in his latest effort to remake the region and the earthquake death toll in Japan stands at 18. Despite delivering no rate cuts, US President Donald Trump stood by Fed Chair Kevin Warsh, calling him a "brilliant guy".
Major US indices ended down more than 1.5% after initially greeting the Fed's decision to keep interest rates level. (EPA Images pic)NEW YORK: Wall Street stocks finished sharply lower Wednesday after the Federal Reserve kept interest rates unchanged despite lofty US inflation as escalations in the Middle East war pushed oil prices skyward.Major US indices ended down more than 1.5% after initially greeting the Fed's decision to keep interest rates level.However, markets shifted course during Fed chair Kevin Warsh's press conference, where he pledged to achieve price stability and return inflation to the US central bank's 2% target as he simultaneously defended a decision to not hike interest rates."The market is getting mixed messages from the Fed," said Adam Sarhan of 50 Park Investments."Basically, we’re left with a situation where the problem is not solved," said Sarhan of inflation, which stood at 3.5% in June on an annual basis.Besides the Fed decision, the market also digested the latest spike in oil prices after President Donald Trump vowed to hit back hard at Iran after it attacked US bases in Jordan.On Wednesday, Saudi Arabia and the United States announced strikes on militant bases in Iraq, while US ally Israel accused Iran-backed Hezbollah of a truce violation.International benchmark Brent oil futures shot up nearly 8% to US$90.74 a barrel."We continue to see oil prices and inflation pressures moving higher as inventories drain further amid the lack of peace in the Persian Gulf," said a note from Bart Melek of TD Securities.Equity investors have also been on guard about earnings from large technology companies at the nexus of the buildout of artificial intelligence infrastructure central to the US economic growth outlook.After a blowout second quarter, the Nasdaq-100 index earlier this week slipped into a correction, defined as a drop of 10% or more.Analysts have seen the tech industry pullback as prompted by worries the current batch of earnings won't justify the second-quarter gains.On Wednesday afternoon after the stock market closed, Microsoft gained after its earnings, while Meta fell sharply.At the Fed meeting, Warsh reiterated his commitment to achieving price stability."We are on the job. We are focused like a laser, making sure we can do it," he said, adding that there was "no magic wand" with which the Fed could lower i…
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