Ringgit Edges Up Before FOMC Minutes Reveal Monetary Policy Hints
The Malaysian ringgit saw gains against the US dollar on Wednesday before the release of the US Federal Reserve's FOMC meeting minutes. The local currency closed higher at 4.0565/0610 from yesterday's close of 4.0575/0615, supported by last-minute buying.
According to Dr Mohd Afzanizam Abdul Rashid, Bank Muamalat Malaysia Bhd chief economist, the markets will be observing the FOMC minutes for clues on the US Federal Reserve's stance on monetary policy. The release of these minutes is expected to provide guidance for market players on whether a rate hike is imminent.
The ringgit was not as fortunate against other major currencies, however, sliding against the Japanese yen to 2.5498/5528 from 2.5420/5446 at yesterday's close and slipping against the British pound to 5.4994/5055 from 5.4902/4956.
The local note also traded lower against regional currencies, weakening against the Indonesian rupiah at 227.3/227.7 from 227.1/227.4 at yesterday's close and edging down against the Thai baht to 12.2686/2871 from 12.2657/2819.