At 8am, the local currency edged up to 4.0500/4.0670 against the greenback from Monday’s closing of 4.0580/4.0625.

According to reports, the release of the FOMC minutes is set to be the key market focus today, with the economic calendar otherwise thin across most markets ahead of the New Year holiday.

At the same time, investors continue to price in the possibility of further interest rate cuts by the US Federal Reserve in 2026, following the 25-basis-point reduction delivered at the December policy meeting.

Meanwhile, IPPFA director of investment strategy and country economist Sedek Jantan said the resilience of the ringgit is increasingly being anchored by domestic flow dynamics rather than external risk sentiment.

He said year-end liquidity conditions are expected to remain thin, but the direction of underlying flows is favouring the local note.

“Export conversion, portfolio inflows and corporate hedging activity continue to favour the ringgit, creating a persistent supply of US dollars in the local market.

“As a result, any intraday US dollar upticks are likely to be met by exporter selling and real money demand for ringgit assets, keeping US dollar-ringgit capped despite the quieter trading environment,” he noted.

At the opening, the ringgit was traded lower against a basket of major currencies.

It inched up against the euro to 4.7677/4.7877 from 4.7787/4.7840 at Monday’s close, was slightly higher versus the British pound at 5.4711/5.4941 from 5.4742/5.4803 yesterday, but it depreciated vis-a-vis the Japanese yen to 2.5970/2.6082 from 2.5956/2.5987 previously.

However, the local note was firmer against its Asean peers.

It rose against the Singapore dollar to 3.1505/3.1642 from 3.1572/3.1610 on Monday, gained versus the Thai baht to 12.7910/12.8540 from 12.8985/12.9190, strengthened against the Indonesian rupiah to 241.2/242.3 from 241.7/242.1, and was higher vis-a-vis the Philippine peso to 6.88/6.92 from 6.90/6.91 previously.