Ringgit Higher Against Major Currencies Ahead Of Fed Meeting

By Abdul Hamid A Rahman

KUALA LUMPUR, July 27 (Bernama) -- The ringgit closed higher against the greenback and other major currencies on Monday, ahead of the US Federal Reserve (Fed) meeting on Tuesday and Wednesday to decide on interest rates.

At 6 pm, the ringgit climbed to 4.0835/0875 against the greenback from Friday’s close of 4.0885/0935.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded mostly within a tight range against the US dollar during the day. “Investors remained cautious ahead of the Federal Open Market Committee (FOMC) meeting scheduled for July 28 and 29,” he told Bernama.

Mohd Afzanizam noted that crude oil prices fell after the United States and Iran halted hostilities over the weekend, with West Texas Intermediate crude sliding 6.98 per cent to US$83.08 per barrel, while Brent crude fell 7.94 per cent to US$89.10 per barrel. “Nevertheless, it is still too early to assess the situation, as developments remain highly fluid,” he cautioned.

The ringgit traded higher against a basket of major currencies at the close today.

It edged up against the Japanese yen to 2.4969/4994 from 2.4976/5008 last Friday, appreciated vis-a-vis the euro to 4.6536/6581 from 4.6556/6613, and rose versus the British pound to 5.4433/4486 from 5.4442/4509 previously.

The ringgit was mixed against regional currencies.

It strengthened against the Indonesian rupiah to 226.7/227.0 from 227.6/227.9 and advanced versus the Singapore dollar to 3.1653/1686 from 3.1667/1708 previously. However, the local currency weakened vis-a-vis the Thai baht to 12.1612/1775 from 12.1414/1606 and eased against the Philippine peso to 6.62/6.63 from 6.61/6.62 last Friday.

-- BERNAMA