Ringgit Bucks Fed Rate Hike Expectations to End Week Strong

The Malaysian ringgit closed higher against the US dollar on Friday, despite expectations of further interest rate hikes from the Federal Reserve. The ringgit increased to 4.0715/0765 versus the greenback from Thursday's close of 4.0840/0880.

According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the US Dollar Index (DXY) remained well-supported at 101.182 points, as the odds of rate hikes in October and December currently stand at 70.9% and 80.6%, respectively.

The ringgit traded mostly higher against a basket of major currencies, gaining against the euro to 4.6378/6435 from 4.6451/6497 at Thursday's close, and advancing vis-à-vis the British pound to 5.3907/3973 from 5.4023/4076.