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THE ringgit began the day on a positive note, appreciating against the US dollar as markets anticipate the US FOMC decision on interest rates later today
Bernama reported that at 8am, the ringgit was trading at 4.4405/4480 against the US dollar, marking a slight gain from Monday’s closing rate of 4.4450/4490.
Malaysian markets were closed yesterday for a public holiday.
Bank Muamalat Malaysia Bhd’s Chief Economist Dr Mohd Afzanizam Abdul Rashid explaining that markets are generally expecting the US Federal Reserve (Fed) to take a more dovish stance when it announces its interest rate decision later today. “The Fed might lean towards further rate cuts, with markets forecasting three cuts this year,” he told Bernama.
The two-day FOMC meeting, which started yesterday, has been the focal point for market participants as they await the Fed's stance on interest rates.
Dr Mohd Afzanizam also pointed out that US Treasury bond yields were mixed, with the 10-year yield dropping by two basis points to 4.18%, while the 2-year note held steady at 4.04%. This mixed performance in US Treasury bond yields reflects the cautious sentiment prevailing in the market ahead of the FOMC’s decision.
Despite the ringgit's positive movement against the US dollar, it generally traded lower against a range of major currencies. It fell against the euro, which was priced at 4.8566/8648 compared to Monday’s close of 4.8455/8499, and depreciated against the British pound to 5.7576/7628 from 5.7404/7463. However, the local currency made gains against the Japanese yen, rising to 2.9720/9772 from 2.9896/9925.
The ringgit showed a mixed performance against its ASEAN counterparts. It weakened slightly against the Singapore dollar, which stood at 3.3360/3421 from the previous close of 3.3351/3383, but strengthened against the Thai baht, rising to 13.1961/2263 from 13.2213/2391.
The local currency also gained against the Indonesian rupiah, moving to 270.2/270.8 from 270.9/271.2, and was marginally stronger versus the Philippine peso, trading at 7.75/7.77 compared to 7.76/7.77 at the previous close. – March 19, 2025
