Ringgit ends lower on Fed rate hike expectations
Expectations of further interest rate hikes by the US Federal Reserve continued to support the US dollar, says analyst.
KUALA LUMPUR: The Malaysian ringgit saw fluctuations throughout the trading day, finishing lower against the US dollar amid expectations of additional interest rate hikes from the Federal Reserve. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid noted that markets anticipated the Fed to raise rates by another 50 basis points this year, bolstering the US dollar.
The ringgit commenced the day robustly, touching RM4.0640 against the US dollar early on. However, it faltered as the US dollar held its ground, causing the ringgit to slip to roughly RM4.0780 by the afternoon. Other Asian currencies exhibited varying trends, so the ringgit's performance was not entirely isolated, according to Rashid.
By 6pm, the ringgit slipped further to 4.0780/4.0825 against the greenback from the previous close of 4.0730/4.0775. Despite the overall decline, the ringgit displayed strength vis-à-vis the euro, British pound, and Japanese yen, as well as against the Singapore dollar and Thai baht. However, it experienced a decline against the Indonesian rupiah and the Philippine peso.
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.
Also reported by 1 other outlet
- Ringgit ends lower on Fed rate hike expectations freemalaysiatoday.com
