KUALA LUMPUR, March 16 — The ringgit closed higher against the US dollar today, supported by higher crude oil prices amid the ongoing geopolitical tensions between Russia and Ukraine, signalling the uncertainty in the foreign exchange market.
A dealer said that the local developments have also helped to lift the local note against the greenback and several emerging currencies. Nevertheless, another dealer said the forecast that the US Federal Reserve plans to raise its rate to 0.5 per cent has the potential to drive up the US dollar against the ringgit in the short to medium term.
The Fed is expected to hike its lending rate, the first time since 2018, as it struggles with soaring US inflation, the impact of the war in Ukraine, and the continuing coronavirus crisis.