Ringgit Stumbles Against US Dollar Amid Fed Rate Hike Expectations

The ringgit ended higher against major currencies on Wednesday but weakened against the US dollar due to expectations of further interest rate hikes by the United States Federal Reserve (Fed).

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said markets expect the Fed to raise interest rates by another 50 basis points this year, supporting the US dollar.

The ringgit started strong, reaching RM4.0640 against the US dollar in the morning but could not maintain its strength and weakened to around RM4.0780 in the afternoon.