The ringgit opened unchanged against the US dollar as traders await the FOMC meeting, with recent soft US data boosting rate cut expectations
KUALA LUMPUR: The ringgit opened unchanged against the US dollar today as traders adopted a wait-and-see approach ahead of next week’s Federal Open Market Committee meeting.
At 8am, the local currency stood flat at 4.1300/4.1350 against the greenback, matching last Friday’s closing rate.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said recent soft US economic indicators have strengthened expectations for a Federal Funds Rate cut.
“Weaker consumer confidence and a sluggish labour market in the US support the case for monetary easing,” he told Bernama.
Simultaneously, OPEC+’s decision to maintain production quotas has pushed crude oil prices lower, with Brent crude hovering around US$62.38 per barrel.
“This points to contained global inflation going into 2026,” Mohd Afzanizam added.
He noted the ringgit has performed well, appreciating by more than 8% on a year-to-date basis.
The economist expects the ringgit to trade between RM4.12 and RM4.14 against the US dollar today amid cautious market sentiment.
At opening, the ringgit depreciated against most major currencies.
It weakened against the British pound to 5.4677/4743 from 5.4528/4594 and slid against the euro to 4.7912/7970 from 4.7768/7825.
The local currency also dipped against the Japanese yen to 2.6490/6523 from 2.6420/6456 at last week’s close.
Against ASEAN currencies, the ringgit showed mixed performance.
It eased against the Singapore dollar to 3.1872/1916 from 3.1813/1857 and weakened against the Thai baht to 12.8632/8892 from 12.8245/8472.
The ringgit remained flat against the Indonesian rupiah at 247.6/248.0 and unchanged against the Philippine peso at 7.04/7.06. – Bernama
