Ringgit Falters Against Greenback Amid US Fed Rate Hike

The Malaysian ringgit ended Thursday in mostly higher positions against major currencies, but declined versus the US dollar.

According to Bernama, investors were digesting the US Federal Reserve's latest interest rate decision, which saw a 25-basis-point hike yesterday. The Fed is unlikely to be done with this increase, with further hikes potentially on the horizon as it remains committed to bringing inflation back to its two percent target.

The ringgit fell to 4.0965/1010 against the greenback from Tuesday's close of 4.0835/0880. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed this move to the Fed's decision, which he believes may lead to further rate hikes.