Ringgit strengthens as Fed rate-hike bets cool

The ringgit gained ground against major currencies on the back of fading expectations that the US Federal Reserve will raise interest rates at its September meeting, according to market analysts. The prospect of a delayed rate hike typically weighs on the US dollar, creating favourable conditions for emerging market currencies like the ringgit to appreciate. Market participants have increasingly priced in a more cautious stance from the Fed, with officials signalling a possible pause in the central bank's tightening cycle. The shift in rate expectations has redirected investor flows away from dollar-denominated assets, providing support for regional currencies across Southeast Asia. The ringgit's gains reflect broader sentiment among traders betting on a softer monetary policy environment from the United States in coming months.