KUALA LUMPUR: The ringgit opened lower against the US dollar today, with the greenback remaining firm as markets await the outcome of the Federal Open Market Committee’s (FOMC) two-day policy meeting later today.
At 9am, the ringgit stood at 4.1250/1290 from Monday’s 4.1230/1270.
The market was closed on Tuesday for the installation of Sultan Abdullah Sultan Ahmad Shah as Malaysia’s 16th Yang di-Pertuan Agong.
Bank Islam Malaysia Bhd chief economist Afzanizam Abdul Rashid said while the US Federal Reserve seems almost certain to deliver the 25 basis point reduction in the Fund Rate, the accompanying statement following their decision tonight will be closely scrutinised.
“There could be a chance that the Fed may want to adopt a very cautious step to cut the rates as the economy is, by far, doing quite well.
“The committee would want to wait for more evidence to justify an aggressive cut. In that sense, the ringgit is poised to remain weak against the US dollar in the immediate terms, pending the FOMC meeting,” he told Bernama.
As such, the ringgit is expected to linger around its current resistance level of RM4.1287 with the next resistance level at RM4.146 against the US dollar, he added.
Overall, the ringgit traded mostly lower against a basket of major currencies except for the British pound.
It was weaker against the Singapore dollar at 3.0085/0125 from 3.0062/0096 on Monday and depreciated vis-a-vis the euro at 4.6006/6055 from 4.5860/5913.
The local currency also slipped against the yen to 3.7966/8010 from 3.7951/7995 but gained versus the British pound to 5.0127/0180 from 5.0849/0915 previously.