Ringgit Rises as US Rate Hike Expectations Ebb

The Malaysian ringgit opened higher against the US dollar on Wednesday, as expectations of a potential Federal Reserve interest rate hike in September have eased.

According to Dr. Mohd Afzanizam, chief economist at Bank Muamalat Malaysia Bhd, the focus will now be on the release of the Federal Open Market Committee (FOMC) minutes today, which will provide clarification on the Fed's monetary stance.

Afzanizam noted that positive data points for Malaysia, including strong economic growth and stable inflation, suggest that the country's economy is resilient enough to withstand a potential rate hike. As such, he expects the ringgit to hover around RM4.05 to RM4.07 today.