KUALA LUMPUR: The ringgit maintained its strength to close below the psychological level of 4.00 against the US dollar today, supported by positive sentiment and continued investor positioning ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
At 6 pm, the local currency rose to 3.9500/9555 versus the greenback from 3.9615/9670 at Monday’s close. This was the strongest closing level since the ringgit hit 3.9480 in May 2018.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the two-day FOMC meeting will begin tonight, with traders and investors closely monitoring how the US Federal Reserve (Fed) describes the economic outlook and how it translates into policy decisions going forward.
"Markets have priced in two interest rate cuts this year, reflecting expectations that the Fed will adopt a more accommodative policy stance as economic conditions evolve.
"There is also a new chairman to be appointed in the near future, with the US President expected to announce the decision fairly soon,” he told Bernama.
He added that while near-term sentiment remains supportive, markets are likely to stay cautious over the direction of interest rates in 2026.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim said that positive economic data have reinforced the position and strength of the ringgit, and the currency’s appreciation also reflects confidence in Malaysia’s economic system, in line with the nation’s improving economic indicators.
"The strengthening of the ringgit should not be viewed in isolation; it must also be considered alongside rising investment, incomes, and lower unemployment.
"Overall economic data point to a positive trend, which in turn bolsters the ringgit’s position and resilience,” he told the Dewan Rakyat during Question Time today.
The ringgit appreciated against the British pound to 5.4103/4178 from 5.4166/4241 at yesterday’s close, increased vis-à-vis the euro to 4.6958/7023 from 4.6999/7064 on Monday, and gained versus the Japanese yen to 2.5691/5730 from 2.5783/5820 previously.
It strengthened against the Singapore dollar to 3.1174/1219 from 3.1242/1288 yesterday, advanced versus the Thai baht to 12.7247/7478 from 12.7441/7679 at the previous close, firmed vis-à-vis the Indonesian rupiah to 235.5/236.0 from 236.0/236.4 previously, and rose against the Philippine peso to 6.68/6.70 from 6.72/6.73. - Bernama
