Ringgit ends lower against greenback ahead of FOMC decision

The local currency traded in a tight range against the greenback throughout the day, says analyst.

KUALA LUMPUR:

 The ringgit closed lower against the US dollar on Wednesday ahead of a decision by the Federal Open Market Committee (FOMC) on US interest rates later tonight.

At 6pm, the ringgit slid to 4.1155/4.1195 versus the greenback compared with yesterday’s close of 4.1105/4.1165.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that the local currency traded in a tight range against the greenback throughout the day.

“While the (expected) 25 basis points cut (later today) is already priced in, the main concern now is on 2026, that is, whether the US Federal Reserve (Fed) is inclined to cut more at a time when the impact from the US import tariff hike will be in full swing next year,” he told Bernama.

At the close, the ringgit trended mostly higher against major currencies.

It rose versus the British pound to 5.4781/5.4835 from 5.4863/5.4943 at yesterday’s close, strengthened against the euro to 4.7884/4.7930 from 4.7900/4.7970, and edged up vis-à-vis the Japanese yen to 2.6240/2.6267 from 2.6332/2.6373.

However, the local currency traded lower against Asean currencies.

It slipped versus the Singapore dollar to 3.1748/3.1781 from 3.1705/3.1753 at yesterday’s close and dipped against the Indonesian rupiah to 246.5/246.9 from 246.4/246.9 previously.

The ringgit also retreated vis-à-vis the Thai baht to 12.9243/12.9422 from 12.9172/12.9413 and was slightly lower against the Philippine peso at 6.95/6.96 from 6.94/6.96 yesterday.- FMT