KUALA LUMPUR, Jan 29 — The ringgit closed lower against the United States (US) dollar today following the US Federal Reserve’s (US Fed) decision to keep interest rates unchanged, which supported the greenback.
At 6pm, the ringgit depreciated to 3.9275/9315 versus the US dollar from 3.9175/9235 at Wednesday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Federal Open Market Committee (FOMC) maintained the benchmark interest rate at its latest meeting, marking the first pause since July 2025.
‘The US central bank kept the key interest rate at a range of 3.50-3.75 per cent, citing a resilient economic outlook, despite expectations that the Donald Trump administration would favour an interest rate cut,” he told Bernama.
Afzanizam noted that the US Fed remained upbeat in its assessment of the US economy.
“The accompanying FOMC statement noted that economic activity has been expanding at a solid pace, suggesting that interest rates are unlikely to be lowered in the near term, which in turn supported the US dollar,” he said.
Meanwhile, as the ringgit had appreciated quite steeply in recent sessions, today’s mild correction was understandable.
“That said, there remains room for further appreciation, particularly if Trump announces a new US Fed chairman later this year, which could signal a resumption of monetary easing in the second half of 2026,” Afzanizam said.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It appreciated vis-à-vis the euro to 4.6953/7001 from 4.6955/7027 at Wednesday’s close and climbed against the Japanese yen to 2.5616/5644 from 2.5652/5692 yesterday, but it slid against the British pound to 5.4207/4263 from 5.4011/4093 previously.
As for its performance against ASEAN peers, the ringgit strengthened vis-à-vis the Singapore dollar to 3.1065/1099 from 3.1072/1122 at yesterday’s close, advanced versus the Thai baht to 12.5930/6119 from 12.6135/6389 on Wednesday, and firmed against the Philippine peso to 6.66/6.67 from 6.67/6.68.
However, it snapped its four-day rally versus the Indonesian rupiah, weakening to 234.4/234.7 from 234.2/234.7 yesterday.
