Ringgit Edges Up Ahead of FOMC and BoJ Meetings
The Malaysian ringgit opened stronger against the US dollar on Tuesday, amidst cautious market sentiment ahead of key central bank meetings. According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the local currency edged up to 4.0705/0775 against the greenback from yesterday's close of 4.0735/0770.
The market focus is on the upcoming Federal Open Market Committee (FOMC) meeting and Bank of Japan (BoJ) policy decisions, said Dr Afzanizam. He predicted that the US Federal Reserve (Fed) will deliver a 25 basis point hike, citing rising bond yields in the three- and six-month US Treasury bills auction.
Additionally, Dr Afzanizam noted that Brent crude is hovering around $105.68 per barrel, with oil supply shortages expected to exert upward pressure on global oil prices. As such, he expects the ringgit to trade within a narrow range today.