Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said market sentiment remains guarded ahead of the US FOMC deliberations tonight.

“While the Fed Funds Rate (FFR) is likely to be kept steady, the guidance from the US Federal Reserve (Fed) is extremely crucial in setting the tone for the currency market,” he told Bernama.

He added that the projection by the US Fed on the interest rate would be closely monitored, with market expectations going for two to three rate cuts this year.

“Thus far, market sentiment among businesses and consumers have weakened,” he noted.

Overall, markets are on edge as uncertainties in both the economic and geopolitical landscapes continue to grow.

Meanwhile, the ringgit traded higher against a basket of major currencies.

It increased against the euro to 4.8324/4.8400 from 4.8455/4.8499 at Monday’s close, improved against the British pound to 5.7496/5.7587 from 5.7576/5.7628, and rose against the Japanese yen to 2.9595/2.9643 from 2.9896/2.9925 previously.

The local currency also strengthened against Asean currencies.

It edged up against the Singapore dollar to 3.3251/3.3306 from 3.3351/3.3383 at the close on Monday and advanced against the Thai baht to 13.1778/13.2056 from 13.2213/13.2391.

The ringgit inched up against the Indonesian rupiah to 268.1/268.7 from 270.9/271.2 previously and was marginally higher versus the Philippine peso at 7.74/7.75 from 7.76/7.77 on Monday.