Ringgit ends lower as investors await FOMC decision

KUALA LUMPUR: The Malaysian ringgit slipped against the US dollar as investors remained cautious prior to the two-day US Federal Open Market Committee (FOMC) meeting, which commences tonight, according to an analyst. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that the probability of a US interest rate increase this week stood at 92.3%, as per data from CME FedWatch.

CME FedWatch is a Chicago Mercantile Exchange (CME Group) tool that reflects market expectations for the US Federal Reserve’s interest-rate decisions. "As a result, the US Dollar Index (DXY) increased by 0.25% to 99.641 points, while the 10-year US Treasury note yield exceeded the 5% threshold," Rashid told Bernama. By 6 pm, the local currency had dropped to 4.0835/4.0880 against the US dollar, down from yesterday's close of 4.0735/4.0770.

At the close, the ringgit weakened against the euro, falling to 4.7111/4.7163 from 4.7008/4.7049 the previous day, slipped against the yen, sliding to 2.6366/2.6396 from 2.6355/2.6380, and edged down against the British pound, moving from 5.5037/5.5098 to 5.5037/5.5098. The ringgit also weakened against other Asian currencies, such as the Singapore dollar, Thai baht, and Indonesian rupiah.