What does the dovish tilt by the US Federal Reserve imply for the ringgit?

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The US Federal Reserve’s dovish tilt is linked to a stronger ringgit versus the US dollar, mainly through a weaker US dollar.
The ringgit closed higher against the US dollar on Thursday as the US dollar came under pressure. A dovish tilt by the US Federal Reserve, together with US-China trade tensions and the US government shutdown, raised the prospects of an interest rate cut in the United States at the end of the month, which weighed on the dollar and helped lift the ringgit.
The ringgit rose as the US dollar weakened
The local note climbed to 4.2275/2300 against the US dollar at 6 pm, compared with 4.2305/2355 at the previous close. The US Dollar Index (DXY) fell by 0.21 per cent to 98.584, reflecting weaker US dollar performance during the session.
Fed “dovish tilt” raised rate cut expectations at month-end
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Fed’s dovish tilt raised the prospects of a US interest rate cut at the end of the month. In the same explanation, he linked this shift to pressure on the US dollar amid broader uncertainties.
The ringgit’s strength was specifically against the US dollar, not all currencies
While the ringgit strengthened versus the US dollar, it weakened against some other major currencies during the same period. It slid against the euro to 4.9284/9313 from 4.9213/9272, softened further versus the British pound to 5.6792/6826 from 5.6469/6535, and was almost flat against the Japanese yen at 2.7943/7961.
Moves against regional currencies showed mixed but generally supportive trading
Trading was mostly higher versus Asean currencies, with marginal improvement against the Singapore dollar to 3.2630/2651 from 3.2648/2689. The ringgit also strengthened against the Indonesian rupiah to 254.9/255.2 from 255.2/255.6 and advanced versus the Philippine peso to 7.27/7.28 from 7.29/7.30, although it depreciated versus the Thai baht to 12.9933/13.0151 from 12.8975/9182.

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What does the dovish tilt by the US Federal Reserve imply for the ringgit?

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