KUALA LUMPUR: The ringgit opened higher against the US dollar on Monday, supported by positive domestic sentiment ahead of the Negeri Sembilan state election, although caution ahead of the US Federal Open Market Committee (FOMC) meeting capped gains.
At 8 am, the local currency strengthened to 4.0830/0930 against the greenback from 4.0885/0935 at Friday's close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants would be watching whether the Negeri Sembilan state election influences national politics.
Early voting will take place on Tuesday (July 28), with polling scheduled for Aug 1, 2026.
Mohd Afzanizam said while the ringgit could draw support from positive domestic developments, external factors continued to dominate market sentiment.
"We expect market sentiment to remain cautious ahead of the FOMC meeting on July 28-29. The likelihood of a rate hike has increased, supporting the US dollar.
"Oil prices remain elevated and could exert upward pressure on inflation. That, in turn, could influence the Federal Funds Rate. As such, trading in the ringgit is likely to remain cautious," he said.
He expects the ringgit to trade between RM4.09 and RM4.10 against the US dollar today.
The ringgit traded mostly higher against a basket of major currencies at the opening, but weakened against the British pound.
It strengthened against the Japanese yen to 2.4956/5018 from 2.4976/5008 at Friday's close, appreciated against the euro to 4.6530/6644 from 4.6556/6613, but slipped versus the British pound to 5.4516/4650 from 5.4442/4509 previously.
The local currency was mixed against regional peers.
It edged up against the Indonesian rupiah to 227.3/227.9 from 227.6/227.9 at Friday's close and strengthened versus the Philippine peso to 6.60/6.62 from 6.61/6.62.
However, it weakened against the Thai baht to 12.1431/1790 from 12.1414/1606 previously and eased versus the Singapore dollar to 3.1676/1756 from 3.1667/1708 at Friday's close. - Bernama
