Ringgit steady ahead of US Federal Reserve decision

Traders are awaiting the outcome of the Federal Open Market Committee meeting on Dec 10, says analyst.

KUALA LUMPUR:

 The ringgit held firm against the US dollar at the close today as traders adopted a wait-and-see approach ahead of the two-day Federal Open Market Committee (FOMC) meeting starting tomorrow in the US.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the local currency hovered within a tight range of RM4.1057 to RM4.1160 during the day as traders and investors awaited the outcome of the FOMC meeting on Dec 10.

“It seems that a 25 basis points cut in the Fed funds rate is a foregone conclusion,” he told Bernama.

At 6pm, the ringgit was almost unchanged at 4.1100/4.1145 versus the greenback compared to last Friday’s close of 4.1105/4.1140.

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

It climbed versus the British pound to 5.4729/5.4789 from 5.4859/5.4905 at last Friday’s close, strengthened against the euro to 4.7873/4.7926 from 4.7912/4.7953, and edged up vis-à-vis the Japanese yen to 2.6429/2.6460 from 2.6536/2.6561.

The local currency also traded mostly higher against Asean currencies.

It gained versus the Singapore dollar to 3.1698/3.1735 from 3.1741/3.1773 at last Friday’s close, increased against the Indonesian rupiah to 246.1/246.5 from 246.8/247.2 and advanced vis-à-vis the Thai baht to 12.9006/12.9204 from 12.9054/12.9221 previously.

The ringgit, however, was unchanged against the Philippine peso at 6.97/6.98. - FMT