Ringgit Weakens as Markets Price in Possible US Rate Hike
The Malaysian ringgit weakened against major and regional currencies on Friday as markets speculated about a potential interest rate hike in the United States. The US Federal Reserve's (Fed) upcoming meeting on September 15-16 has sparked debate among investors, with some expecting a rate increase this month.
Fed Chair Kevin Warsh's recent remarks at the Jackson Hole symposium have fueled hawkish expectations. Despite the ringgit being fairly stable according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, it still traded lower against the US dollar at 4.0425/0465 compared to Thursday's close of 4.0405/0445.
The local currency also depreciated against other major currencies, including the euro (4.6962/7008 from 4.6894/6940), British pound (5.4663/4717 from 5.4539/4593), and Japanese yen (2.5832/5860 from 2.5838/5865). Against regional currencies, the ringgit traded mostly lower, except for a slight gain against the Philippine peso.