Ringgit extends gains as Fed rate-hike expectations ease
Declining expectations of a US Federal Reserve interest rate hike in September weighed on the greenback, says analyst.
KUALA LUMPUR: The Malaysian ringgit extended its gains as traders grew less confident about a September Federal Reserve interest rate hike, causing the greenback to weaken. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the ringgit's rise to lower odds of a September rate hike, alongside positive economic sentiment.
Finance Minister Idris Amir Hamzah Azizan highlighted Malaysia's strong economic growth in the first half of the year, surpassing Bank Negara Malaysia's GDP projection of 4% to 5%. The economy grew 5.4% in Q1 and 6% in Q2, resulting in a 5.7% growth for the first half of 2026. However, Afzanizam cautioned that market sentiment could remain volatile if rising crude oil prices lead to higher inflation towards year-end.
By 6pm, the ringgit closed at 4.0575/4.0615 against the US dollar, up from yesterday's close of 4.0585/4.0630. The local currency also strengthened against the Japanese yen, British pound, euro, Philippine peso, Thai baht, Indonesian rupiah, and Singapore dollar compared to their respective previous closes.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Ringgit extends gains as Fed rate-hike expectations ease freemalaysiatoday.com
