Ringgit flat as China stimulus disappoints market

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Investors expected a larger reduction to its one-year loan prime rate, says analyst.

KUALA LUMPUR: The ringgit ended flat against the US dollar today as it tracked the yuan’s downtrend following disappointment over China’s underwhelming round of stimulus measures, said an analyst.

“The cut was smaller than the 15 basis points reduction expected by the market. Investors were also disappointed by the five-year LPR, which was surprisingly maintained at 4.2%,” he said. “Therefore, it’s going to be a risk-off mode at the moment, which would translate into a weaker ringgit,” he said.

 

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