Ringgit Holds Steady Against Dollar Ahead of Expected Rate Hike

The Malaysian ringgit closed flat against the US dollar on Thursday but mostly higher against regional currencies.

This came ahead of the US Federal Reserve meeting tomorrow and Wednesday to decide on interest rates, with many expecting a rate hike in September.

Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said that the ringgit traded within a narrow range following the Fed's decision overnight to keep the federal funds rate unchanged.

The decision was not unanimous, with three of the 12 voting members favouring an increase in the benchmark interest rate. This suggests that the Fed may be leaning towards raising interest rates at its next FOMC meeting on September 15 and 16.