KUALA LUMPUR, Oct 27 — The ringgit opened higher against the US dollar today amid investor caution ahead of the Federal Open Market Committee (FOMC) meeting scheduled for October 28 and 29, an analyst said.

At 8am, the ringgit appreciated to 4.2145/2350 against the US dollar from 4.2210/2255 at Friday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said September’s 3 per cent consumer price index (CPI) print was below the 3.1 per cent consensus estimate.

This suggests that the US Federal Reserve (Fed) is on track to deliver its second interest rate cut, with possibly more cuts in 2026, as the US central bank has shifted its focus to reviving the job market, he told Bernama.

“It means that the interest rate differential between the Fed fund rate and the overnight policy rate (OPR) will be narrowing in the near future,” he said.

On the other hand, Mohd Afzanizam said Bank Negara Malaysia (BNM) is in no hurry to cut the OPR. Therefore, he expects the benchmark interest rate to be kept steady for the remainder of 2025.

“From a policy rate perspective, it should be ringgit-positive. Therefore, we shall see the dollar-ringgit pair linger around RM4.21 and RM4.22 today,” he added.

Meanwhile, Mohd Afzanizam said US President Donald Trump’s presence at the Asean Summit is positive for Malaysia, as it indicates that the US supports global trade and remains open to active negotiations to achieve a win-win outcome.

“Hence, this is a plus for the ringgit as well, albeit over the mid to long term,” he said.

At the opening, the ringgit traded mostly higher against major currencies.

It inched up against the Japanese yen to 2.7553/7689 from 2.7592/7623 at Friday’s close, advanced against the British pound to 5.6150/6423 from 5.6232/6292, but eased versus the euro to 4.9023/9262 from 4.9010/9062.

The local note was also traded mostly higher against Asean currencies.

It appreciated against the Singapore dollar to 3.2472/2632 from 3.2484/2521 at Friday’s close, strengthened versus the Philippine peso to 7.18/7.22 from 7.20/7.21, and edged up vis-à-vis the Indonesian rupiah to 253.8/255.2 from 254.2/254.6 previously.

However, the ringgit weakened versus the Thai baht to 12.8939/9630 from 12.8768/8952 at Friday’s close. — Bernama