Ringgit Gains Against US Dollar Amid Fed Rate Hold

The Malaysian ringgit opened higher against the US dollar after the US Federal Reserve kept interest rates steady in its latest Federal Open Market Committee meeting. The local currency traded at 4.0850/0920 against the greenback, a slight improvement from yesterday's close of 4.0875/0915.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the ringgit's appreciation to the weaker US dollar index (DXY), which fell 0.57 per cent to 100.842 points.

The decision by the US Fed not to raise interest rates was seen as a signal that market rates have tightened, implying an impact on the economy via higher cost of capital, according to Dr Mohd Afzanizam.