Ringgit Fades Against US Dollar Amid Expectations of Further Interest Rate Hikes

The Malaysian ringgit ended higher against major currencies on Wednesday, but weakened against the US dollar due to expectations of further interest rate hikes by the United States Federal Reserve (Fed).

According to Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd., markets expect the Fed to raise interest rates by another 50 basis points this year, supporting the US dollar.

The ringgit traded at 4.0780/0825 against the greenback at 6pm on Wednesday, down from Tuesday's close of 4.0730/0775.

However, it gained against other major currencies, including the euro and British pound, and strengthened against the Japanese yen.