The two-day federal open market committee meeting, taking place from July 29 to July 30 in Washington, is expected to provide key guidance on the Fed’s monetary policy direction.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit was higher against the US dollar during the morning session at RM4.2278, but weakened later in the day.
However, he said the ringgit’s weakness was capped by positive news following the International Monetary Fund’s (IMF) upward revisions to global and Malaysian gross domestic product (GDP) forecasts.
“The IMF has revised its 2025 global GDP growth forecast from 2.8% to 3%, citing that the front-loading activities and the US’s willingness to reduce tariffs have helped improve the economic outlook.
“By extension, Malaysia’s 2025 GDP was revised upward from 4.1% to 4.5%.
“Improved trade predictability should be viewed positively, as this would enhance the contribution from the external demand,” he told Bernama.
Afzanizam opined that trade negotiations with the US among various countries, including Malaysia, remain an ongoing affair, as both parties continue to seek a middle ground to address the trade imbalances.
“Perhaps, this will set the right context for the 13th Malaysia Plan (13MP), which will promote structural reforms that could be beneficial for the ringgit in the long run,” he added.
The 13MP will be tabled tomorrow by Prime Minister Anwar Ibrahim in Parliament.
At 6pm, the local note eased to 4.2410/4.2455 versus the greenback from yesterday’s close of 4.2320/4.2365.
At the close, the ringgit ended lower against major currencies.
It fell against the Japanese yen to 2.8646/2.8678 from 2.8479/2.8511 at the close yesterday, depreciated versus the British pound to 5.6745/5.6805 from 5.6518/5.6578, and edged lower against the euro to 4.8996/4.9048 from 4.8990/4.9042 previously.
The ringgit was mixed against regional peers.
It was lower against the Indonesian rupiah at 258.5/258.9 from 257.8/258.2, weakened against the Singapore dollar to 3.2919/3.2957 from 3.2875/3.2913, but improved against the Philippine peso to 7.36/7.38 from 7.38/7.39, and inched up versus the Thai baht to 13.0528/13.0719 from 13.0537/13.0740 previously.