Ringgit Rises on Easing Fed Rate Hike Fears

The Malaysian ringgit opened higher against the US dollar on Wednesday as expectations of a potential Federal Reserve interest rate hike in September waned, according to an economist.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, said that despite the Fed's decision not to raise rates, the focus now shifts to the release of the Federal Open Market Committee minutes later on Wednesday.

The ringgit strengthened to 4.0565/4.0625 against the greenback from Tuesday's close of 4.0575/4.0615 at 8am.

Rashid noted that positive economic data for Malaysia, such as strong growth and stable inflation, suggests the country is resilient enough for Bank Negara Malaysia to maintain its policy rate.