Kuala lumpur: The ringgit closed higher against most major currencies but eased against the greenback on Tuesday amid cautious investor sentiment ahead of the US Federal Reserve's (Fed) interest rate decision later this week. At 6 pm, the local currency dropped to 4.0885/0930 against the US dollar from Monday's close of 4.0835/0875.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the ringgit continued to trade within a narrow range as market participants awaited the outcome of the Fed's two-day Federal Open Market Committee (FOMC) meeting on July 28 and 29. "Markets are anxious to see the Fed's latest assessment of the (American) economy, as well as its guidance on the US interest rate outlook," he stated.

Mohd Afzanizam further explained that global crude oil prices had been trending lower following the resumption of negotiations between the United States and Iran. This development has raised hopes for a possible reopening of the Strait of Hormuz and a military de-escalation in West Asia, which could influence market dynamics.

In terms of other major currencies, the ringgit showed strength. It edged up against the Japanese yen to 2.4948/4976 from 2.4969/4994, appreciated vis- -vis the euro to 4.6429/6480 from 4.6536/6581, and rose versus the British pound to 5.4287/4347 from 5.4433/4486 on Monday.

The ringgit also performed well against regional currencies, strengthening against the Indonesian rupiah to 226.0/226.4 from 226.7/227.0, advancing versus the Singapore dollar to 3.1603/1640 from 3.1653/1686, and improving vis- -vis the Thai baht to 12.1494/1681 from 12.1612/1775. However, the local currency edged down against the Philippine peso to 6.63/6.64 from 6.62/6.63 yesterday.