Ringgit Trades Within Narrow Range Amid Anticipation of US Federal Reserve Decision

The ringgit closed higher against most major currencies on Tuesday, but eased against the US dollar amid cautious investor sentiment ahead of the US Federal Reserve's interest rate decision later this week.

Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid said the ringgit continued to trade within a narrow range as market participants awaited the outcome of the Fed's two-day Federal Open Market Committee meeting on July 28 and 29.

'Markets are anxious to see the Fed's latest assessment of the (American) economy, as well as its guidance on the US interest rate outlook,' he told Bernama.

The ringgit traded higher against a basket of major currencies at the close today. It edged up against the Japanese yen to 2.4948/4976 from 2.4969/4994, appreciated vis-à-vis the euro to 4.6429/6480 from 4.6536/6581, and rose versus the British pound to 5.4287/4347 from 5.4433/4486 on Monday.

The ringgit also traded mostly higher against regional currencies. It strengthened against the Indonesian rupiah to 226.0/226.4 from 226.7/227.0, advanced versus the Singapore dollar to 3.1603/1640 from 3.1653/1686, and improved vis-à-vis the Thai baht to 12.1494/1681 from 12.1612/1775 previously.