Kuala lumpur: The ringgit closed flat against the US dollar after the latest US Federal Open Market Committee (FOMC) minutes suggested a less unified stance on further policy tightening, an analyst said. At 6 pm, the ringgit was traded at 4.0750/0795 against the US dollar from 4.0750/0800 at Wednesday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that the minutes impacted the greenback amid expectations that the US central bank may keep interest rates unchanged for the remainder of the year, which helped the local currency maintain its position. Currently, the US federal fund rates (FFR) are positioned between 3.50 per cent and 3.75 per cent.

Additionally, the recent decision by the Bank Negara Malaysia's Monetary Policy Committee (MPC) to maintain the Overnight Policy Rate (OPR) at 2.75 per cent appears to be beneficial for the ringgit. Dr Mohd Afzanizam noted, "The accompanying statement suggests that the MPC members are keen to keep the OPR steady at 2.75 per cent throughout the year with a gross domestic product (GDP) growth projection of between four per cent and five per cent for 2026 is highly attainable. This also reinforced the view that the OPR will remain stable for 2026."

At the close, the ringgit registered a decline against a basket of major currencies. It fell against the British pound to 5.4654/4714 from 5.4369/4435 at Wednesday's close, weakened against the euro to 4.6581/6633 from 4.6471/6528, and slid against the Japanese yen to 2.5091/5120 from 2.5083/5114.

In terms of regional currencies, the local note traded with mixed results. It decreased against the Singapore dollar to 3.1518/1558 from 3.1487/1528 at Wednesday's close and slipped against the Thai baht to 12.1886/2064 from 12.1685/1882 previously. However, the ringgit appreciated against the Indonesian rupiah to 224.8/225.1 from 226.2/226.5 and edged up against the Philippine peso to 6.61/6.62 from 6.62/6.64.