Ringgit opens higher against US dollar amid rate-hike expectations

The ringgit opened higher against the US dollar on Wednesday as the greenback weakened, according to the New Straits Times. This was attributed to higher US Treasury yields, which suggested that the Federal Reserve could opt for a higher benchmark interest rate when the Federal Open Market Committee (FOMC) meets on Sept 15-16. The Japanese yen also strengthened against the US dollar, reflecting growing expectations that the Bank of Japan (BOJ) could raise its policy rate, supported by signs of stronger economic performance.

Both these factors contributed to the local currency's strength, as markets weighed the prospects of interest rate hikes in the United States and Japan.

Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.