Ringgit edges higher against US dollar as bargain‑hunting offsets Fed hike concerns

KUALA LUMPUR, Sept 25 — The Malaysian ringgit edged higher against the US dollar on September 25, 2022, as bargain-hunting investors offset concerns over potential further interest rate hikes by the Federal Reserve. By 6pm, the ringgit traded at 4.0715/0765 against the greenback, up from yesterday's close of 4.0840/0880. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the ringgit strengthened to RM4.0673 in the early hours before slipping slightly to RM4.0743 in the afternoon.

The US Dollar Index (DXY) remained strong at 101.182 points, with Federal Reserve rate hike odds remaining high at 70.9% for October and 80.6% for December, according to futures contracts. Throughout the day, the ringgit performed mixed against major currencies – strengthening against the euro and British pound, but weakening against the Japanese yen.

Its performance against regional currencies was also varied, with gains against the Singapore dollar and Indonesian rupiah, but losses versus the Thai baht and Philippine peso.