Ringgit Holds steady as markets await Federal Reserve rate decision

The ringgit finished the day at 4.0805/4.0845 per US dollar, identical to Monday's close, as investors awaited the Federal Open Market Committee meeting on Oct 27-28. Afzanizam Rashid of Bank Muamalat Malaysia Bhd noted that the US Dollar Index declined, but market sentiment still leans toward a rate increase in December, which helped the ringgit stay within a tight band. Against a basket of major currencies, the ringgit weakened against the Japanese yen, British pound and euro.

Its performance versus ASEAN currencies was mixed: it gained against the Thai baht, lost ground to the Singapore dollar and Indonesian rupiah, and held steady versus the Philippine peso. Overall, the currency's stability reflects cautious market expectations ahead of the Fed decision.