KUALA LUMPUR, July 9 - The ringgit closed flat against the United States dollar after the latest US Federal Open Market Committee (FOMC) minutes suggested a less unified stance on further policy tightening, an analyst said.
At 6pm, the ringgit was traded at 4.0750/0795 against the US dollar from 4.0750/0800 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the minutes weighed on the greenback amid expectations that the US central bank may keep interest rates unchanged for the remainder of the year, helping the local currency hold its ground.
Current US federal fund rates (FFR) stand at between 3.5 and 3.75 per cent.
Afzanizam said the latest decision by the Bank Negara Malaysia’s Monetary Policy Committee (MPC) to keep the Overnight Policy Rate (OPR) steady at 2.75 per cent seems to be ringgit-positive.
“The accompanying statement suggests that the MPC members are keen to keep the OPR steady at 2.75 per cent throughout the year, with gross domestic product (GDP) growth projection of between 4 per cent and 5 per cent for 2026 highly attainable.
“This also reinforces the view that the OPR will remain stable for 2026,” Afzanizam told Bernama.
At the close, the ringgit traded lower against a basket of major currencies.
It fell against the British pound to 5.4654/4714 from 5.4369/4435 at yesterday’s close, weakened against the euro to 4.6581/6633 from 4.6471/6528 and slid against the Japanese yen to 2.5091/5120 from 2.5083/5114 yesterday.
Against regional currencies, the local note traded mixed.
It fell against the Singapore dollar to 3.1518/1558 from 3.1487/1528 at yesterday’s close and slipped against the Thai baht to 12.1886/2064 from 12.1685/1882 previously.
The ringgit, however, appreciated against the Indonesian rupiah to 224.8/225.1 from 226.2/226.5 and edged up against the Philippine peso to 6.61/6.62 from 6.62/6.64 at yesterday’s close.
