Ringgit Rides Higher Amid US Dollar Surge

The Malaysian ringgit has gained strength against several major currencies, including the yen and euro, amidst a surge in the value of the US dollar. The ringgit traded at 4.0900/0975 against the greenback this morning, up from yesterday's close of 4.0885/0930.

According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the US dollar index (DXY) has risen by 0.27% to 99.811 points. He attributes this increase to news that US President Donald Trump is pushing back on Iran's compensation demand.

This development is seen as a positive signal for a potential rate hike in the upcoming Federal Open Market Committee (FOMC) meeting in September, which could further boost the value of the US dollar.