As of 9 am, the local currency stood at 4.0750/0800 against the greenback compared with Tuesday’s close of 4.0750/0790.

A dealer said the FOMC’s meeting and reports of a new dispute between Beijing and Washington in their trade negotiation had investors holding off their investments especially in the emerging markets, including Malaysia.

The FOMC which began its monetary meeting yesterday was expected to maintain its dovish policy towards interest rate hikes.

“Key decisions made at the FOMC will influence the flow of investments while the ongoing trade tension between the US and China has continuously affected the performance of the ringgit,” the dealer told Bernama.

He added that not only Malaysia’s currency faces uncertainty but the performances of its regional peers were also affected as well.

“The conflicting series of reports overnight on the US-China trade talk has influenced the market in such way,” he said.

Meanwhile, the ringgit traded higher against other major currencies.

It increased against the Japanese yen to 3.6508/6562 from 3.6613/6659 and rose versus the euro to 4.6235/6304 from 4.6268/6321 on Tuesday.

The ringgit also added to the British pound to 5.4014/4084 from 5.4079/4149 and gained against the Singapore dollar to 3.0120/0169 from 3.0170/0204 yesterday.