Ringgit Holds Steady Against Dollar as Fed Keeps Rates Unchanged

The Malaysian ringgit closed mostly higher against regional currencies and was little changed against the US dollar on Thursday.

This followed the Federal Open Market Committee's (FOMC) decision to keep interest rates unchanged, with three out of 12 voting members favoring an increase in the benchmark rate.

Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the ringgit's performance to the US Federal Reserve's likely move to raise interest rates at its next meeting on September 15 and 16.

He pointed out that this could put the US dollar in a favorable position due to higher crude oil prices potentially reversing the moderation in US inflation recorded in June.