Ringgit Weakens Against Major Currencies Ahead of FOMC Meeting

The Malaysian ringgit weakened against several major currencies on Tuesday as investors remained cautious ahead of the US Federal Open Market Committee (FOMC) meeting.

According to Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the odds for a US rate hike this week are reportedly at 92.3 per cent based on data from CME FedWatch.

The ringgit's value dropped to 4.0835/0880 against the greenback from Monday's close of 4.0735/0770, and also weakened against the euro, yen, British pound, Singapore dollar, Indonesian rupiah, Thai baht, and Philippine peso.

The US Dollar Index (DXY) rose 0.25 per cent to 99.641 points while the 10-year US Treasury note yield surpassed the 5.00 per cent level.