Ringgit Traders Battered by US Rate Hike Expectations

The ringgit ended Wednesday's trading session on a mixed note against major currencies.

It edged down to 4.0780/0825 against the US dollar from Tuesday's close of 4.0730/0775, despite expectations of further interest rate hikes by the United States Federal Reserve (Fed) that continue to support the greenback.

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, providing further support to the US dollar.

The ringgit did start the day stronger, reaching RM4.0640 against the US dollar in the morning, but it could not maintain that strength as the US dollar remained firm.