Ringgit Slides as US Interest Rate Hike Debate Continues

The Malaysian ringgit declined against the US dollar on Friday as market participants closely watched the debate over interest rate hikes in the United States.

The Federal Open Market Committee meeting scheduled for September 15 and 16 has increased expectations of a rate hike this month, following hawkish remarks by Fed chair Kevin Warsh at the Jackson Hole symposium.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid noted that despite market uncertainties, the ringgit was fairly stable. At 6pm, the ringgit was quoted at 4.0425/4.0465 against the US dollar, compared to yesterday's close of 4.0405/4.0445.

The local note also weakened against other major currencies, including the euro, British pound, and Japanese yen.