Kuala Lampur:The ringgit finished higher against major currencies on Wednesday but weakened against the US dollar due to expectations of further interest rate hikes by the United States Federal Reserve (Fed).

According to BERNAMA News Agency, at 6 pm, the ringgit decreased to 4.0780/0825 against the US dollar from Tuesday's close of 4.0730/0775. This came as markets anticipated the Fed would raise interest rates by another 50 basis points this year, continuing to support the US dollar.

Dr. Mohd Afzanizam Abdul Rashid, Bank Muamalat Malaysia Bhd's chief economist, noted that the ringgit began the day stronger, reaching RM4.0640 against the US dollar in the morning. However, it could not sustain this strength as the US dollar remained firm, leading to the ringgit's weakening to around RM4.0780 in the afternoon. Other Asian currencies also exhibited mixed movements, indicating that the ringgit's performance was not entirely isolated.

By the close of the trading day, the ringgit had gained against a basket of major currencies. It appreciated against the euro to 4.6522/6573 from 4.6705/6757 and advanced against the British pound to 5.4156/4216 from 5.4452/4512. Additionally, it strengthened against the Japanese yen to 2.5836/5868 from 2.5958/5988.

The ringgit's performance against ASEAN peers was mixed. It appreciated against the Singapore dollar to 3.1909/1947 from 3.1955/1993 and strengthened versus the Thai baht to 12.2599/2782 from 12.2847/3035. However, it declined against the Indonesian rupiah to 228.8/229.2 from 227.7/228.0 and weakened against the Philippine peso to 6.51/6.52 from 6.49/6.50.