Ringgit Rides Out Pre-Fed Jitters with Mixed Moves
The Malaysian ringgit closed higher against most major currencies on July 28, but eased against the US dollar due to cautious investor sentiment ahead of the US Federal Reserve's interest rate decision. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, markets are anxious to see the Fed's latest assessment of the American economy and its guidance on US interest rates.
The ringgit traded at 4.0885/0930 against the US dollar, down from Monday's close of 4.0835/0875. It also appreciated against the Japanese yen, euro, British pound, Indonesian rupiah, Singapore dollar, and Thai baht, but weakened slightly against the Philippine peso.
The Fed's two-day Federal Open Market Committee meeting on July 28-29 is expected to have a significant impact on market sentiment. Dr Mohd Afzanizam noted that global crude oil prices had been trending lower following the resumption of negotiations between the US and Iran, raising hopes of a possible reopening of the Strait of Hormuz and military de-escalation in West Asia.