Ringgit Gains Ahead of State Election Amid FOMC Caution
The Malaysian ringgit opened higher against the US dollar on Monday, boosted by positive domestic sentiment ahead of the Negeri Sembilan state election. The local currency strengthened to 4.0830/0930 against the greenback from 4.0885/0935 at Friday's close.
Market participants are watching whether the state election influences national politics, said Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd.
The FOMC meeting on July 28-29 may also impact market sentiment, with a rate hike increasing the likelihood of supporting the US dollar. Oil prices remain high and could exert upward pressure on inflation, influencing the Federal Funds Rate.
Dr Afzanizam expects the ringgit to trade between RM4.09 and RM4.10 against the US dollar today.