By Zufazlin Baharuddin
KUALA LUMPUR, Aug 18 (Bernama) -- The ringgit extended its gains to close higher against major and regional currencies on Tuesday, as declining expectations of a US Federal Reserve interest rate hike in September weighed on the greenback.
At 6 pm, 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 Dr Mohd Afzanizam Abdul Rashid said lower odds of a rate hike at the September Federal Open Market Committee (FOMC) meeting remained the key driver of the ringgit’s appreciation, alongside positive sentiment towards the Malaysian economy.
Finance Minister II Datuk Seri Amir Hamzah Azizan said today that Malaysia’s impressive economic growth in the first half of the year, which exceeded Bank Negara Malaysia’s 2026 gross domestic product (GDP) projection of four to five per cent, demonstrated the resilience of the country’s economy.
GDP grew 5.4 per cent in the first quarter and six per cent in the second quarter, resulting in overall economic growth of 5.7 per cent in the first half of 2026.
However, Mohd Afzanizam noted that market sentiment remained fragile, as higher crude oil prices could push inflation higher towards the end of the year.
“If that happens, the rate hike thesis could resurface again,” he told Bernama.
At the close, the local currency ended higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.5420/5446 from 2.5496/5526 at Monday’s close and gained against the British pound to 5.4902/4956 from 5.5021/5082. The ringgit also rose against the euro to 4.6982/7028 from 4.7062/7115 previously.
The local note also traded higher against regional currencies.
It was marginally higher against the Philippine peso at 6.56/6.58 from 6.60/6.61 and edged up against the Thai baht to 12.2657/2819 from 12.2948/3136.
It gained against the Indonesian rupiah to 227.1/227.4 from 228.0/228.3 at Monday’s close, and climbed against the Singapore dollar to 3.1756/1790 from 3.1804/1842 previously.
-- BERNAMA