Ringgit ends mostly higher but weakens against US dollar on rate hike fears

KUALA LUMPUR, Nov 11 — The Malaysian Ringgit saw mostly positive movement against major and regional currencies on Wednesday, but weakened against the US dollar due to increased expectations of a US interest rate hike. The day's close saw the Ringgit drop to 4.0710/0745 against the US dollar, a decrease from Tuesday's closing rate of 4.0540/0580.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the Ringgit's decline to the stronger-than-expected US inflation data, which heightened the likelihood of a December Federal Open Market Committee (FOMC) rate increase. With a greater than 80% chance of a rate hike, the US Dollar Index (DXY) rose by 0.18% to reach 102.412 points.

Meanwhile, the Ringgit showed strength against the Euro, British Pound, and Japanese Yen. It also performed well against Asian currencies like the Thai Baht, Indonesian Rupiah, and Philippine Peso. However, the local currency experienced a slight decline against the Singapore Dollar, moving to 3.1745/1775 from 3.1726/1758 the previous day.