KUALA LUMPUR: The ringgit extended its gains to close higher against major and regional currencies yesterday, as declining expectations of a US Federal Reserve interest rate hike in September weighed on the greenback.
At 6pm, the ringgit rose to 4.0575/0615 against the US dollar from Monday’s close of 4.0585/0630.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said lower odds of a rate hike at the September Federal Open Market Committee or FOMC meeting remained the key driver of the ringgit’s appreciation, alongside positive sentiment towards the Malaysian economy.
Mohd Afzanizam noted that market sentiment remained fragile, as higher crude oil prices could push inflation higher towards the end of the year. —Bernama.
