Markets reassess September Fed outlook after Waller signals possible pause

  • The ringgit weakened and South Korean insurers fell as Waller’s comments shifted markets toward a possible September Fed rate hold.
  • The ringgit closed at 4.0425/0465 per dollar, while Samsung Fire & Marine Insurance fell 5.56% to 663,000 won.
  • August CPI, labor-market data and oil prices remain decisive as Fed officials weigh disinflation against persistent inflation.

The Malaysian ringgit ended Friday slightly weaker against the US dollar, while South Korean insurance stocks sold off after Federal Reserve Governor Christopher Waller said he could support keeping the benchmark rate unchanged at the Sept. 15-16 Federal Open Market Committee meeting if incoming data continued to show disinflation. The ringgit was quoted at 4.0425/0465 per dollar at 6 pm in Kuala Lumpur, compared with Thursday’s close of 4.0405/0445, while Samsung Fire & Marine Insurance closed 5.56% lower at 663,000 won after falling as much as 10.26% intraday. The implied probability of a September Fed rate hold rose from 36.8% to 49.5%, while the probability of a 25-basis-point increase fell from 68% to 50.2%.

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