Players were adopting a “wait-and-see” attitude and kept their exposure to the greenback to a minimum until a more clear direction emerged.
At 9 am, the local note traded at 4.4360/4400 against the greenback from Thursday’s close of 4.4350/4390.
“Market sentiment remained wary and the Fed’s statement had overturned expectations of many investors who anticipated a rapid rate hike this year.
“The dovish statement also led to a weakening dollar against other major currencies,” he said.
The Fed raised the interest rates by 25 basis points to a range of between 0.75% and 1.00% on Wednesday.
On the local front, the ringgit traded lower against a basket of major currencies, except the Japanese yen.
It eased against the Singapore dollar to 3.1613/1646 from 3.1586/1630 on Thursday and versus the British pound, it fell to 5.4811/4874 from 5.4320/4387 yesterday.
The local note weakened against the euro to 4.7758/7805 from Thursday’s close of 4.7499/7546, but it was higher against the yen at 3.9094/9143 from 3.9099/9145 yesterday.