Ringgit Edges Higher Against US Dollar As Investors Await FOMC Outcome

By Abdul Hamid A Rahman

KUALA LUMPUR, July 29 (Bernama) -- The ringgit closed marginally higher against the US dollar on Wednesday as investors remained on the sidelines ahead of the outcome of the United States Federal Open Market Committee’s (FOMC) meeting.

At 6 pm, the local currency appreciated to 4.0875/0915 against the greenback from Tuesday’s close of 4.0885/0930.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit remained largely range-bound against the US dollar, and other Asian currencies showed similar trends, as traders and investors awaited the FOMC’s decision later tonight.

“The US dollar could receive a boost should the Federal Reserve adopt a hawkish tone, as elevated crude oil prices may suggest that the decline in the June inflation rate is temporary,” he told Bernama.

Mohd Afzanizam said developments in West Asia remained fluid following reports that the US military had intercepted Iranian ballistic missiles launched at its forces, with global crude oil prices subsequently rising.

“West Texas Intermediate and Brent crude oil prices rose by 3.67 per cent and 3.79 per cent to US$82.17 per barrel and US$87.28 per barrel, respectively,” he said.

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

It eased against the Japanese yen to 2.4982/5008 from 2.4948/4976, depreciated vis-à-vis the euro to 4.6561/6606 from 4.6429/6480, and declined versus the British pound to 5.4351/4405 from 5.4287/4347 on Tuesday.

Meanwhile, the ringgit also traded lower against regional currencies.

It weakened against the Indonesian rupiah to 226.1/226.5 from 226.0/226.4, declined versus the Singapore dollar to 3.1632/1666 from 3.1603/1640, shed vis-à-vis the Thai baht to 12.1971/2138 from 12.1494/1681, and slid against the Philippine peso to 6.65/6.67 from 6.63/6.64 yesterday.

-- BERNAMA