Ringgit Rises Against Most Currencies Amid Fed Rate Hike Expectations

The Malaysian ringgit strengthened against major currencies on Wednesday, but weakened against the US dollar due to expectations of further interest rate hikes by the US Federal Reserve.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that markets anticipate another 50 basis points increase in interest rates this year, supporting the greenback's value.

The ringgit initially rose to RM4.0640 against the US dollar but failed to maintain its strength as the US dollar remained firm throughout the day.

In contrast, the local note traded higher against a basket of major currencies, gaining against the euro and British pound, while also strengthening versus the Japanese yen.