Kuala Lumpur: The ringgit closed lower against the US dollar today as traders remained cautious ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting, said an analyst. At 6pm, the local note depreciated to 4.2285/2360 versus the greenback compared to Monday’s close of 4.1990/2035.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid highlighted that the MPC meeting on May 8 will be on traders’ radar. He mentioned the possibility of BNM lowering its policy rate as a preemptive measure to support growth. Mohd Afzanizam also pointed out that traders were focused on the two-day US Federal Open Market Committee meeting starting on May 6.

He added that the previous sharp appreciation of the ringgit against the US dollar might have prompted traders and investors to lock in some gains. Additionally, the US Dollar Index (DXY) remains below 100 points, currently around 99.583 points.

At the close, the ringgit traded lower against a basket of major currencies. It eased against the Japanese yen to 2.9502/9556 from 2.9192/9225 at Monday’s close, inched lower against the euro to 4.7824/7909 from 4.7629/7680, and weakened against the British pound to 5.6302/6402 from 5.5868/5928.

Similarly, the ringgit performed weaker against its ASEAN peers. It dropped against the Singapore dollar to 3.2749/2812 from Monday’s close of 3.2644/2682 and fell against the Thai baht to 12.9399/9700 from 12.7497/7747. The local note also slid against the Philippine peso to 7.60/7.62 from 7.53/7.54 and edged down against the Indonesian rupiah to 257.0/257.6 from 255.1/255.5.