Kuala Lumpur: The ringgit opened flat against the US dollar on Tuesday as investors exercised caution ahead of the two-day Federal Open Market Committee (FOMC) meeting starting later today, an analyst noted. At 8 am, the local currency stood at 4.2360/2470 against the greenback, compared to the previous day’s close of 4.2370/2450.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd’s chief economist Dr. Mohd Afzanizam Abdul Rashid commented that market sentiment would likely remain cautious as investors await the US Federal Reserve’s latest assessment amidst ongoing global geopolitical developments. “The focus now is on the two-day FOMC meeting, which will commence on June 17. On that note, the ringgit is expected to stay flat as markets await the latest assessment by the Fed surrounding the current development,” he told Bernama.

At the market opening, the ringgit showed strength against a basket of major currencies. It appreciated against the Japanese yen to 2.9266/9346 from 2.9397/9455 at Monday’s close, gained ground against the British pound to 5.7461/7611 from 5.7555/7664, and rose against the euro to 4.8926/9053 from 4.9077/9170 previously.

In contrast, the ringgit remained mostly stable against its ASEAN counterparts. It was at 260.4/261.2 against the Indonesian rupiah and stayed at 7.51/7.53 against the Philippine peso. However, it edged up against the Singapore dollar to 3.3058/3149 from 3.3102/3167 at yesterday’s close but dipped against the Thai baht to 13.0463/0866 from 13.0389/0696.