Ringgit Edges Up Against Dollar Amid Fed Rate Hike Expectations

The Malaysian ringgit rose slightly against the US dollar on Wednesday due to expectations that the Federal Reserve may hold off on raising interest rates next month. The ringgit traded at 4.0785/0820 against the greenback, up from Tuesday's close of 4.0790/0850.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that weaker-than-expected consumer sentiment data could weigh on household spending in the US, which accounts for about two-thirds of the country's economy. He added that market players would closely monitor the ADP employment and Personal Consumption Expenditures (PCE) reports due later tonight.

Against a basket of major currencies, however, the ringgit traded lower. It fell against the euro to 4.6324/6363 from 4.6235/6303 at Tuesday's close, retreated vis-à-vis the British pound to 5.4162/4209 from 5.3937/4016, and lost against the Japanese yen to 2.5969/5993 from 2.5869/5909.