KUALA LUMPUR, April 26 — The ringgit snapped its seven-day losing streak to rebound slightly today as the market entered correction mode.
In addition, the US dollar continued to rally and hit its highest level in two years yesterday on expectations that the Federal Reserve would have to lift interest rates aggressively to tame inflation. Mohd Afzanizam said the currency market would have to endure this period of uncertainty until the deliberation by the Federal Open Market Committee next week.“Apart from that, the Fed is also expected to announce its balance sheet reduction plan. It needs to remove the excess liquidity in the system as the economy has been recovering quite consistently,” he told Bernama.
“Still, it is possible that the buying force for the greenback will start to lose strength only when it reaches the region of 4.4450, which was the high hit in 2017,” he said.