Ringgit Surges Despite Fed Rate Hike Expectations

The ringgit closed higher against the US dollar on Friday, despite expectations of further interest rate hikes by the Federal Reserve.

According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, 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.

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, driven by bargain-hunting activity.