Ringgit closes higher against US dollar despite Fed rate hike expectations
Interest rate futures put the odds of US rate hikes in October and December at 70.9% and 80.6%, up from 55.4% and 77.6%, says analyst.
KUALA LUMPUR: On Friday, the Malaysian ringgit managed to close higher against the US dollar, despite expectations of additional interest rate increases from the Federal Reserve. By 6pm, the ringgit rose to 4.0715/4.0765 against the dollar, marking an improvement from yesterday's closing rate of 4.0840/4.0880. Bank Muamalat Malaysia Bhd's chief economist, Afzanizam Rashid, attributed the strengthening of the ringgit to bargain-hunting activity.
He noted that the ringgit started the day at RM4.0673 but experienced a slight pullback, settling at RM4.0743 by the afternoon. The US Dollar Index (DXY) remained strong at 101.182 points, with the odds of a Fed rate hike in October and December at 70.9% and 80.6%, respectively, up from 55.4% and 77.6% the previous Monday. The ringgit's performance improved against several major currencies, appreciating against the euro to 4.6378/4.6435 and the British pound to 5.3907/5.3973.
However, it declined against the Japanese yen to 2.5764/2.5797. The local currency saw mixed results against its Asean counterparts, strengthening against the Singapore dollar but weakening against the Thai baht 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.
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