Ringgit ends slightly lower against US dollar ahead of Fed rate decision
At 6 pm, the local note eased to 4.2410/2455 versus the greenback from yesterday's close of 4.2320/2365.
The two-day Federal Open Market Committee (FOMC) meeting, taking place from July 29 to 30 in Washington, is expected to provide key guidance on the Fed's monetary policy direction.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was higher against the US dollar during the morning session at RM4.2278, but weakened later in the day.
However, he said the ringgit's weakness was capped by positive news following the International Monetary Fund's (IMF) upward revisions to global and Malaysian gross domestic product (GDP) forecasts.
"The IMF has revised its 2025 global GDP growth forecast from 2.8 per cent to three per cent, citing that the front-loading activities and the US's willingness to reduce tariffs have helped improve the economic outlook.
"By extension, Malaysia's 2025 GDP was revised upward from 4.1 per cent to 4.5 per cent. Improved trade predictability should be viewed positively, as this would enhance the contribution from the external demand,' he told Bernama.
Mohd Afzanizam opined that trade negotiations with the US among various countries, including Malaysia, remain an ongoing affair, as both parties continue to seek a middle ground to address the trade imbalances.
"Perhaps, this will set the right context for the 13th Malaysia Plan (13MP), which will promote structural reforms that could be beneficial for the ringgit in the long run,' he added.
The 13MP will be tabled on Thursday by Prime Minister Datuk Seri Anwar Ibrahim in Parliament.
At the close, the ringgit ended lower against major currencies.
It fell against the Japanese yen to 2.8646/8678 from 2.8479/8511 at the close on Tuesday, depreciated versus the British pound to 5.6745/6805 from 5.6518/6578 yesterday, and edged lower against the euro to 4.8996/9048 from 4.8990/9042 previously.
The ringgit was mixed against regional peers.
It was lower against the Indonesian rupiah at 258.5/258.9 from yesterday's 257.8/258.2, weakened against the Singapore dollar to 3.2919/2957 from 3.2875/2913, but improved against the Philippine peso to 7.36/7.38 from 7.38/7.39, and inched up versus the Thai baht to 13.0528/0719 from 13.0537/0740 previously. - Bernama
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