Ringgit mixed ahead of Fed decision, slips against US dollar

KUALA LUMPUR, Oct 27 - The Malaysian ringgit closed slightly higher against major currencies on Wednesday, but weakened against the US dollar, as market participants anticipated the US Federal Open Market Committee’s (FOMC) policy decision this week, according to an analyst. By 6pm, the ringgit slipped to 4.0865/0900 against the US dollar, down from its previous close of 4.0855/0895.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that elevated Brent crude prices, currently around US$116 (RM474) per barrel, indicate a risk of higher inflation which might impact the FOMC’s monetary policy stance. He added, "For now, the ringgit has been quite steady despite heightened uncertainties."

The ringgit strengthened against the British pound to 5.4412/4458, advanced against the Japanese yen to 2.5903/5927, and climbed against the euro to 4.5524/5563. It also saw gains against its ASEAN peers, including the Singapore dollar, Indonesian rupiah, and Philippine peso. However, the ringgit weakened against the Thai baht to 12.1010/1160, falling from the previous trading range of 12.0766/0930.