Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the FOMC meeting is critical as market participants will be observing the latest macroeconomic projection, especially the Federal Funds Rate (FFR).

Afzanizam indicated that the interest rate futures contract suggests a higher likelihood of rate cuts in May, June, July, and September, with the FFR expected to end the year at approximately 3.50% to 3.75%.

“This suggests a 75 to 100 basis-point cut in the FFR, which essentially will narrow the gap with the overnight policy rate (OPR).

“This could be a boon for the ringgit should the OPR stay unchanged throughout the year,” he told Bernama.

He also noted that equities markets saw widespread declines, with traders and investors concerned about a weak global economy that could significantly impact corporate earnings this year.

Furthermore, he added that the US dollar index (DXY) is still hovering around 103 points and has fallen by 0.14%.

“This is given the fact that major currencies in the DXY constituent such as the euro, pound, yen, Canadian dollar, Swedish krona and Swiss franc have gained against the US dollar,” Afzanizam said.

At 6pm, the ringgit inched up to 4.4100/4.4175 against the greenback from yesterday’s close of 4.4200/4.4235.

The ringgit traded mostly higher against a basket of major currencies.

It rose versus the Japanese yen to 2.9921/2.9974 from 3.0013/0039 at yesterday’s close and advanced against the British pound to 5.7035/5.7132 from 5.7080/5.7125.

The ringgit dipped vis-a-vis the euro to 4.8091/4.8173 from 4.7992/4.8030 previously.

The local currency traded mostly higher against Asean currencies.

It gained versus the Singapore dollar at 3.3118/3.3177 from yesterday’s closing of 3.3211/3.3242, appreciated against the Thai baht to 13.0415/13.0695 from 13.0777/13.0943 and edged higher vis-a-vis the Indonesian rupiah to 268.7/269.3 from 270/270.3 previously.