Ringgit Retreats vs. Dollar, Retains Optimistic Prospects

The Malaysian ringgit retreated a bit against the US dollar today after the initial rally, but analysts still have a positive outlook for the currency due to Malaysia’s accelerating economic growth and expectations of an interest rate hike.

Malaysia’s gross domestic product expanded 6.4 percent in the second quarter of this year, demonstrating the fastest growth in more than a year and beating analysts’ estimates. The Bank Negara Malaysia increased its key interest rate in July, and experts think that the central bank may perform another interest rate hike at the next month’s policy meeting. The ringgit was unable to maintain its rally against the dollar despite the optimistic prospects as positive economic data from the United States bolstered the greenback.

USD/MYR went up from 3.1465 to 3.1485 as of 15:04 GMT today following the drop to 3.1428.

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