Ringgit Edges Higher Ahead of FOMC Decision Amid Crude Oil Price Volatility
The Malaysian ringgit edged higher against the US dollar on Wednesday as investors awaited the outcome of the Federal Open Market Committee's (FOMC) meeting.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit remained largely range-bound against the US dollar, with other Asian currencies showing similar trends.
The FOMC's decision could significantly impact global markets, and a hawkish tone from the Federal Reserve may boost the US dollar. Elevated crude oil prices, which rose 3.67% to $82.17 per barrel for West Texas Intermediate and 3.79% to $87.28 per barrel for Brent crude oil, suggest that the decline in June's inflation rate may be temporary.
The ringgit traded lower against a basket of major currencies at the close, depreciating against the euro, British pound, Japanese yen, Indonesian rupiah, Singapore dollar, Thai baht, and Philippine peso. Its value was 4.0875/0915 against the greenback from Tuesday's close of 4.0885/0930.