Ringgit Gains on Hike Expectations Amid Weakened Greenback

The ringgit opened higher against the US dollar on Wednesday as the greenback weakened. Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, believes that the Federal Reserve may raise interest rates due to rising US Treasury yields.

At 8 am, the local currency strengthened to 4.0560/0635 against the greenback from Tuesday’s close of 4.0605/0640. The Fed's next policy meeting is scheduled for September 15-16.

The Japanese yen also rose against the US dollar to 153.53 yen, reflecting growing expectations that the Bank of Japan could raise its policy rate in response to a stronger economy and rising inflation.