Malaysian Ringgit Weakens Against US Dollar Amid Rate Hike Anticipation

KUALA LUMPUR: The Malaysian ringgit concluded the first trading day of September on a downward trajectory against the US dollar. This decline was driven by growing market expectations of an impending US interest rate hike, prompted by Federal Reserve chair Kevin Warsh’s recent address at the Jackson Hole Symposium.

By 6:00 PM, the local currency had slipped to 4.0370/0410 against the US dollar, down from last Friday’s closing rate of 4.0230/0270.

Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted to Bernama that Warsh’s remarks had a significant impact on the foreign exchange market.

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