Ringgit Gains as Central Bank Decisions Loom

The ringgit opened at 4.0705 against the US dollar on Tuesday. This marks a rise from the previous close of 4.0735. The move reflects a cautious market stance ahead of major policy announcements.

Market participants await decisions from the Federal Open Market Committee and the Bank of Japan. Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia, noted that this uncertainty keeps sentiment tight. He expects the ringgit to trade within a narrow range today.

Fed Hike Expectations Rise

Bond market data suggests the US Federal Reserve will hike rates by 25 basis points. Yields on three-month US Treasury bills rose to 3.97 percent. This is an increase from the previous auction level of 3.80 percent.

Yields on six-month US Treasury bills also climbed to 4.06 percent. The prior auction recorded a yield of 3.89 percent. These shifts in the yield curve point to higher borrowing costs in the US.

Oil Prices Pressure Global Inflation

Brent crude oil hovered near 105.68 US dollars per barrel. The Saudi Arabian East-West pipeline faces delays in returning to full operation. Analysts estimate it will take weeks to restore normal flow.

Supply shortages are expected to push global oil prices higher. Rising energy costs typically exert upward pressure on inflation. This adds complexity to the monetary policy outlook for major economies.

Mixed Performance Against Peer Currencies

The ringgit appreciated against the euro at 4.7006. It also firmed against the Singapore dollar at 3.2041. The currency advanced versus the Indonesian rupiah at 230.3. However, it depreciated against the Japanese yen at 2.6362 and the British pound at 5.4952.

Against regional peers, the ringgit rose against the Philippine peso at 6.47. It fell against the Thai baht at 12.2476. These fluctuations highlight the mixed trading environment across the ASEAN region.