Ringgit Rises Despite Fed Rate Hike Expectations
The Malaysian ringgit closed higher against the US dollar on Friday, driven by bargain-hunting activity despite expectations of further US interest rate hikes. The ringgit increased to 4.0715/4.0765 versus the greenback from yesterday's close of 4.0840/4.0880.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit strengthened to RM4.0673 against the US dollar early in the morning before giving up some of its gains to trade at RM4.0743 in the afternoon.
The US Dollar Index (DXY) remained well supported at 101.182 points as the odds of the Federal Reserve (Fed) raising interest rates stayed high, with Afzanizam saying 'Based on the interest rate futures contract, the odds of rate hikes in October and December currently stand at 70.9% and 80.6%, respectively, up from 55.4% and 77.6% last Monday.'