Ringgit Hits Three-Month Low as Dollar Strengthens Amid US Rate Hike

The Malaysian ringgit has depreciated to its lowest level in nearly three months as the US dollar gains strength. On Thursday, September 17, the currency hit 4.1000, a level not seen since June 26.

This decline is attributed to the rise in US interest rates, which has led to capital flows towards safer assets that yield higher returns. The US Federal Reserve's decision to raise its policy rate for the first time in three years has also contributed to this trend.

A rise in US interest rates tends to attract investors who seek higher returns on their dollar-denominated investments, putting pressure on emerging markets and their currencies.