Kuala lumpur: The ringgit closed higher against the US dollar and its regional peers amidst cautious sentiments, after the United States Federal Open Market Committee (FOMC) meeting minutes revealed that almost all participants supported keeping the interest rate unchanged.

According to BERNAMA News Agency, at 6 pm, the local note rose to 4.2235/2275 against the US dollar from yesterday’s close of 4.2250/2290. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the FOMC minutes indicated the US Federal Reserve’s (Fed) decision to maintain its current stance while assessing the impact of tariff shocks on inflation.

Dr Mohd Afzanizam highlighted that dissenting views from two FOMC members, who favored a 25 basis points cut in the last meeting, suggest that the inflationary impact from tariff hikes might be temporary. He mentioned that market participants would closely watch the Fed’s Jackson Hole Economic Policy Symposium for further policy signals.

By the end of the trading day, the ringgit had mostly appreciated against a basket of major currencies. It rose against the British pound to 5.6899/6953 from 5.7033/7087 on Wednesday and slightly increased against the Japanese yen to 2.8595/8626 from 2.8648/8677. However, it depreciated against the euro, moving to 4.9226/9263 from 4.9196/9242 previously.

Simultaneously, the local currency showed gains against other ASEAN currencies. It strengthened against the Singapore dollar to 3.2819/2853 from 3.2864/2898 at Wednesday’s close and appreciated against the Thai baht to 12.9460/9638 from 12.9756/9935. The ringgit also edged up against the Indonesian rupiah to 259.2/259.6 from 259.6/260.0 and slightly increased against the Philippine peso to 7.40/7.42 from 7.41/7.42 yesterday.