Kuala lumpur: The ringgit remained stable against the US dollar at the close on Tuesday, as markets adopted a cautious stance with the commencement of the Federal Open Market Committee (FOMC) two-day meeting.
According to BERNAMA News Agency, at 6 pm, the ringgit was nearly unchanged at 4.1105/1165/1145 against the greenback, compared to Monday’s closing rate of 4.1100/1145. Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the local currency fluctuated within a narrow range of RM4.1123 to RM4.1225 during the day. This cautious trading reflects anticipation among market participants as FOMC members deliberate on the Federal Funds Rate.
Dr. Mohd Afzanizam further mentioned that market players are also keeping an eye on the Job Openings and Labour Turnover Survey (JOLTS) scheduled for release tonight, seeking data to provide additional insights into the US economy. “The job openings are expected to moderate to 7.2 million in October, down from 7.227 million in the previous month, based on consensus estimates,” he said. He added that visible signs of a weakening labor market could necessitate a rate cut, raising questions about whether the US Federal Reserve (Fed) would consider reducing rates further in 2026, amid potential risks of higher inflation that could constrain monetary tightening.
At the closing bell, the ringgit showed a downward trend against most major currencies. It depreciated against the British pound to 5.4863/4943 from 5.4729/4789 and weakened against the euro to 4.7900/7970 from 4.7873/7926. However, it gained slightly against the Japanese yen, trading at 2.6332/6373 from 2.6429/6460.
In the ASEAN region, the ringgit also traded mostly lower. It slipped against the Singapore dollar to 3.1705/1753 from 3.1698/1735, decreased against the Indonesian rupiah to 246.4/246.9 from 246.1/246.5, and fell against the Thai baht to 12.9172/9413 from 12.9006/9204. Nonetheless, the ringgit saw a slight increase against the Philippine peso, trading at 6.94/6.96, up from 6.97/6.98 previously.