Ringgit Gains Strength Ahead of Fed Interest Rate Decision

The Malaysian ringgit has strengthened against major currencies as markets await the US Federal Reserve's interest rate decision. The ringgit closed at 4.0835/0875 against the US dollar, a slight improvement from Friday's close of 4.0885/0935.

Bank Muamalat Malaysia's chief economist Dr Mohd Afzanizam Abdul Rashid noted that investors remained cautious ahead of the Federal Open Market Committee meeting scheduled for July 28 and 29.

The ringgit's performance was also influenced by the decline in crude oil prices, which fell after the US and Iran halted hostilities over the weekend. West Texas Intermediate crude slid 6.98% to $83.08 per barrel, while Brent crude fell 7.94% to $89.10 per barrel.

The ringgit traded higher against a basket of major currencies at the close today, including the Japanese yen, euro, and British pound. However, it was mixed against regional currencies, strengthening against the Indonesian rupiah and Singapore dollar, but weakening against the Thai baht and Philippine peso.