The ringgit opened stronger against the US dollar after the US Federal Open Market Committee (FOMC) maintained interest rates, pushing up risks to inflation.
At 9.30am, the ringgit was at 4.4250, up 0.16% against the US dollar from its close of 4.4330 at the end of Wednesday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the FOMC’s decision to keep interest rates unchanged, while also reflecting a dovish shift by the US Federal Reserve (Fed).
During the press conference, Fed Chairman Jerome Powell indicated that tariff-driven inflation was likely to be temporary.
He also acknowledged the increased risks of recession, stating that they were not at a worrying level.
He added that the FOMC's quarterly projections revealed that the Fed Funds Rate is expected to remain on track for two quarter-point rate cuts this year with further cuts expected in 2026 and 2027.
However, despite the positive impact of the dovish stance on the ringgit, the local currency was mostly trading lower against a basket of major currencies.
The ringgit rose against the euro to 4.8231/8346 from 4.8324/8400 at the previous close but weakened against the British pound, falling to 5.7504/7641 from 5.7496/7587. It also fell against the Japanese yen, falling to 2.9774/9847 from 2.9595/9643.
Against Asean currencies, the ringgit performed more positively.
It rose slightly against the Singapore dollar, rising to 3.3248/3330 from 3.3251/3306 at the previous close, and strengthened against the Thai baht to 13.1622/2002 from 13.1778/2056.
The local currency also appreciated against the Indonesian rupiah to 267.3/268.1 from 268.1/268.7 and rose slightly against the Philippine peso at 7.71/7.74, up from 7.74/7.75.
