KUALA LUMPUR: The ringgit continued to hold steady against the US dollar at Tuesday's close, as markets positioned for a cautious tone as the Federal Open Market Committee (FOMC) begins its two-day meeting today.
At 6 pm, the ringgit stayed almost unchanged at 4.1105/1165/1145 versus the greenback compared with Monday's close of 4.1100/1145.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local note continued to oscillate within a tight range of RM4.1123 to RM4.1225 during the day, reflecting a cautious stance among traders as FOMC members decide on the Federal Funds Rate in the meeting.
Besides, he said market players will also be monitoring the Job Openings and Labour Turnover Survey (JOLTS) tonight to obtain data and provide more insight on the US economy.
"The job opening is expected to moderate to 7.2 million in October based on consensus estimates from 7.227 million in the previous month.
"In a nutshell, signs of a weakening labour market have become more visible, which necessitates a rate cut. However, the main question now is for 2026 whether the US Federal Reserve (Fed) would be keen to reduce the rate further at a time when risks of higher inflation could limit the pace of monetary tightening," he told Bernama.
At the close, the ringgit trended mostly lower against major currencies.
It fell versus the British pound to 5.4863/4943 from 5.4729/4789 at Monday's close and weakened against the euro to 4.7900/7970 from 4.7873/7926; however, it edged up vis-à-vis the Japanese yen to 2.6332/6373 from 2.6429/6460.
The local note also traded mostly lower against ASEAN currencies.
It slipped versus the Singapore dollar to 3.1705/1753 from 3.1698/1735 at Monday's close, decreased against the Indonesian rupiah to 246.4/246.9 from 246.1/246.5, and dwindled vis-à-vis the Thai baht to 12.9172/9413 from 12.9006/9204 yesterday.
The ringgit, however, was slightly higher against the Philippine peso at 6.94/6.96, up from 6.97/6.98 previously. - Bernama
