# Rising risks of higher interest rates to continue influencing ringgit movement

> The ringgit is projected to trade in a 4.42-4.45 range against the dollar next week. The forecast follows a hot US producer price index (PPI) report, which rose 0.7% in January against an expected 0.4%, and traders are weighing a possible 50 basis point Fed hike in March.

- Date: 2023-02-18 · published 2023-02-18T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/37601-rising-risks-of-higher-interest-rates-to-continue-influencing-ringgit-movement
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Stronger inflation data raises the likelihood of a longer tightening cycle, which supports the dollar and pressures emerging-market currencies. This is a modest driver for feed-commodity prices and mainly affects Malaysian palm oil through currency effects.

## Read by commodity

- DXY: bullish ▲
- USDMYR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-09-18 | [Hike in US interest rate to put pressure on ringgit](https://feedsoft.ai/events/63306-hike-in-us-interest-rate-to-put-pressure-on-ringgit.md) | -0.3% | -0.0% |
| DXY | 2021-10-25 | [Dollar rises from one-month low on prospect of higher interest rates \| Reuters](https://feedsoft.ai/events/7163-dollar-rises-from-one-month-low-on-prospect-of-higher-interest-rates-reuters.md) | +0.4% | +1.7% |
| DXY | 2022-02-14 | [Higher Rates, Rising Inflation, Stronger U.S. Dollar To Pressure Commodities? \| Investing.com](https://feedsoft.ai/events/42643-higher-rates-rising-inflation-stronger-u-s-dollar-to-pressure-commodities.md) | -0.0% | +2.0% |
| DXY | 2020-11-11 | [Political clouds continue to hover over the ringgit](https://feedsoft.ai/events/50411-political-clouds-continue-to-hover-over-the-ringgit.md) | -0.5% | -1.7% |
| DXY | 2024-03-27 | [EUR/USD continues lower on diverging interest-rate outlook](https://feedsoft.ai/events/31419-eur-usd-continues-lower-on-diverging-interest-rate-outlook.md) | +0.2% | +1.4% |

## Sources

- themalaysianreserve.com: https://themalaysianreserve.com/2023/02/18/rising-risks-of-higher-interest-rates-to-continue-influencing-ringgit-movement/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.