Ringgit Weakens Against US Dollar Amid Fed Rate Hike Fears

The Malaysian ringgit's performance against major currencies on Thursday was mixed, with it ending mostly higher but weakening against the US dollar. According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, this is due in part to the recent interest rate decision by the US Federal Reserve (Fed). At 6 pm on Thursday, the ringgit had fallen to 4.0965/1010 against the greenback from its close of 4.0835/0880 on Tuesday.

The Fed's decision to raise interest rates by 25 basis points has sparked concerns about further increases in the coming months. Dr Afzanizam noted that the Fed remains committed to bringing inflation back to its target rate of two percent, which could lead to more rate hikes in the future.