KUALA LUMPUR: The ringgit opened higher against the US dollar ahead of the US Federal Open Market Committee’s (FOMC) decision on interest rates later tonight.

At 8 am, the ringgit advanced to 4.4405/4480 against the greenback from Monday’s close of 4.4450/4490.

Malaysian markets were closed for a public holiday yesterday.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said it has appeared that the markets are anticipating the US Federal Reserve (Fed) will be more dovish when it deliberates on its interest rate decision later today. “The Fed might lean towards more rate cuts with markets anticipating three rate cuts this year,” he told Bernama.

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The two-day FOMC meeting has been going on since yesterday.

Mohd Afzanizam also noted that US Treasury bond yields were mixed with the 10-year yield falling two basis points to 4.18 per cent while the 2-year note remained steady at 4.04 per cent. The mixed US Treasury bond yields indicate that the market remains cautious ahead of the FOMC decision.

The ringgit traded mostly lower against a basket of major currencies.

It slid against the euro to 4.8566/8648 from 4.8455/8499 at Monday’s close and depreciated against the British pound to 5.7576/7628 from 5.7404/7463, however, it gained against the Japanese yen to 2.9720/9772 from 2.9896/9925.

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The local note was mostly higher against ASEAN currencies.

It eased against the Singapore dollar to 3.3360/3421 from 3.3351/3383 at the previous close but strengthened against the Thai baht to 13.1961/2263 from 13.2213/2391.

The ringgit also edged up against the Indonesian rupiah to 270.2/270.8 from 270.9/271.2 and was slightly higher versus the Philippine peso at 7.75/7.77 from 7.76/7.77.