Ringgit strengthens against US dollar before interest rate decision

KUALA LUMPUR: The ringgit started stronger against the US dollar ahead of the US Federal Open Market Committee's (FOMC) interest rate decision later today. At 8 am, the ringgit rose to 4.4405/4480 against the US dollar, improving from Monday's close of 4.4450/4490. Malaysian markets were closed for a public holiday yesterday. Bank Muamalat Malaysia’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that markets expect the US Federal Reserve to adopt a more cautious approach regarding interest rates. He mentioned that many are anticipating at least three rate cuts this year. The two-day FOMC meeting began yesterday. Dr. Mohd Afzanizam also observed that US Treasury bond yields were mixed, with the 10-year yield decreasing slightly while the 2-year note remained steady. This shows that investors are being careful ahead of the FOMC announcement. The ringgit performed mostly lower against various major currencies. It fell against the euro and British pound but appreciated against the Japanese yen. In the ASEAN region, the ringgit was mostly higher. It weakened slightly against the Singapore dollar but strengthened against the Thai baht and the Indonesian rupiah. It was also slightly higher versus the Philippine peso.