Ringgit Defies Fed Hike Expectations to Hit Fresh High Against Greenback

The ringgit strengthened against the US dollar on Friday despite expectations of further interest rate hikes from the Federal Reserve. The currency rose to 4.0715/0765 against the greenback, up from Thursday's close of 4.0840/0880.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said that the odds of rate hikes in October and December currently stand at 70.9 per cent and 80.6 per cent, respectively, up from 55.4 per cent and 77.6 per cent last Monday.

The ringgit traded mostly higher against a basket of major currencies, gaining against the euro to 4.6378/6435 and advancing vis-à-vis the British pound to 5.3907/3973. However, it eased versus the Japanese yen to 2.5764/5797.