RINGGIT OPENS LOWER AGAINST US DOLLAR AHEAD OF FOMC MEETING

By Harizah Hanim Mohamed

KUALA LUMPUR, Dec 9 (Bernama) -- The ringgit opened marginally lower against the US dollar this morning and is expected to maintain trade within a tight range in light of the mixed market sentiments as the Federal Open Market Committee (FOMC) begins its two-day meeting today.

At 8 am, the local currency traded at  4.1120/1220 against the greenback versus 4.1100/1145 at yesterday’s closing.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) has risen by 0.10 per cent to 99.087 points with the FOMC meeting drawing closer.

“US Treasury bond yields were also higher as fixed income traders and investors become increasingly wary about what could be said and projected when the FOMC meeting concludes tomorrow,” he told Bernama. 

He also said that the expectation of a 25-basis-point US rate cut is a foregone conclusion, judging from prevailing labour market, business and consumer sentiment data.

“Nonetheless, the interest rate path in 2026 remains debatable, although the new Fed chairman could be pro-monetary easing,” he added.

At the opening, the ringgit slipped versus the British pound to 5.47971/4930 from 5.4729/4789 at yesterday’s close, weakened against the euro to 4.7868/7984 from 4.7873/7926 but edged up vis-à-vis the Japanese yen to 2.6384/6450 from yesterday’s close of 2.6429/6460.

Against ASEAN currencies, the local note gained versus the Singapore dollar to 3.1687/1769 from 3.1698/1735 at Monday’s close, slipped against the Indonesian rupiah to 246.2/247.0 from 246.1/246.5, and advanced vis-à-vis the Thai baht to 12.8822/9224 from 12.9006/9204 yesterday. 

The ringgit, however, was almost unchanged against the Philippine peso at 6.97/7.00 from 6.97/6.98.

-- BERNAMA