The ringgit opened lower against the US dollar on Wednesday as investors focused on incoming US economic data and the Federal Reserve's anticipated 25-basis-point rate cut after its two-day meeting concludes later tonight.
At 8 am, the local currency was quoted at 4.1140/1250 against the greenback, compared with 4.1105/1165 at Tuesday's close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index rose 0.13% to 99.220 amid mixed labour market signals.
"The local note should remain well supported, although it may trade in a narrow range of RM4.11 to RM4.12," he told Bernama.
Mohd Afzanizam added that the market has largely priced in the 25-basis-point cut by the US Federal Open Market Committee on Wednesday. He noted that the key question now is whether the FOMC will maintain a cautious stance next year or pursue more aggressive rate cuts, especially with inflation potentially remaining elevated due to reciprocal US tariffs.
The ringgit strengthened against other major currencies. It rose against the British pound to 5.4729/4875 from 5.4863/4943, improved versus the euro to 4.7838/7966 from 4.7900/7970, and edged higher against the Japanese yen to 2.6236/6307 from 2.6332/6373.
However, the local currency slipped against regional peers. It declined versus the Singapore dollar to 3.1719/1807 from 3.1705/1753, fell against the Indonesian rupiah to 246.6/247.4 from 246.4/246.9, and weakened versus the Thai baht to 12.9225/9680 from 12.9172/9413. The ringgit also eased against the Philippine peso to 6.95/6.97 from 6.94/6.96.
Bernama
