Ringgit Steady As Traders Await Fed Policy Signal
At 8 am, the local unit was quoted at 4.2300/2400 versus the greenback compared with Tuesday's close of 4.2320/2365.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) rose to 98.886 points as investors positioned themselves for the Fed's policy decision. 'There is no doubt that the Fed will leave rates unchanged. The question is whether they will convey greater openness to cutting rates at their September meeting,' he noted.
US data remains mixed, with the Job Openings and Labour Turnover Survey (JOLTS) showing vacancies slipped to 7.44 million in June from 7.51 million previously, below the consensus forecast of 7.71 million. Meanwhile, consumer confidence climbed to 97.2 points in July from 95.2 points, although concerns about higher import prices persist.
'What this means to the foreign exchange market is that there could be support for the DXY as the Fed is unlikely to cut interest rates in the immediate term,' Mohd Afzanizam said.
On the broader outlook, he pointed out that the International Monetary Fund (IMF) has revised global GDP growth for 2025 to 3.0% from 2.8%, while Malaysia's forecast was raised to 4.5% from 4.1%. 'This suggests the impact of the US tariff shock would be fairly manageable. Hence, the ringgit is likely to oscillate between RM4.23 and RM4.24,' he added.
Against other major currencies, the ringgit traded higher against the British pound at 5.6483/6617 from 5.6518/6578 and rose versus the euro to 4.8861/8976 from 4.8990/9042, but slipped against the Japanese yen to 2.8498/8570 from 2.8479/8511.
The local note was mixed against regional peers, almost flat against the Indonesian rupiah at 257.7/258.5, firmer versus the Singapore dollar at 3.2842/2922, slightly higher against the Philippine peso at 7.37/7.40, but weaker compared with the Thai baht at 13.0556/0969. Related
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