Ringgit Edges Up as Markets Eye FOMC Meeting

The Malaysian ringgit opened higher against the US dollar on Monday, ahead of the upcoming Federal Open Market Committee (FOMC) meeting on September 15-16. The local currency edged up to 4.0630/0730 against the greenback from last Friday's close of 4.0685/0725.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the market sentiment to the Bank of Japan's interest rate decision on September 18 and the influence of crude oil prices. He noted that Brent crude is currently trading at $107 per barrel, contributing to elevated inflationary pressures.

The East-West oil pipeline shutdown by Saudi Arabia and the postponement of a meeting between Iran and Gulf states have raised concerns about oil supplies from West Asia, Dr Afzanizam said. As a result, market sentiment has shifted towards a risk-off mode, with the ringgit expected to trade between RM4.07 and RM4.08 today.

The Malaysian currency also traded mixed against other major currencies, strengthening against the euro and British pound but weakening against the Japanese yen. It fared well against ASEAN currencies, appreciating against the Singapore dollar, Thai baht, and Indonesian rupiah.