Ringgit Falls Against US Dollar Amid FOMC Meeting Cautiousness

The ringgit slid against the US dollar on Tuesday as investors remained cautious ahead of the Federal Open Market Committee's (FOMC) two-day meeting, which began that night. According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the odds for a US rate hike this week were 92.3 per cent based on data from CME FedWatch.

The local currency dipped to 4.0835/0880 against the greenback from Monday's close of 4.0735/0770. This move was reflected in the broader market, with the US Dollar Index (DXY) rising 0.25 per cent to 99.641 points and the 10-year US Treasury note yield surpassing the 5.00 per cent level.

The ringgit also weakened against other Asian currencies such as the Indonesian rupiah, Thai baht, and Singapore dollar. Against its ASEAN peers, it eased against the Singapore dollar to 3.2093/2131 from 3.2055/2085, and retreated against the Thai baht to 12.2620/2800 from 12.2445/2598.