Kuala lumpur: The ringgit opened higher against the US dollar on Monday, bolstered by positive domestic sentiment ahead of the Negeri Sembilan state election. However, anticipation surrounding the upcoming US Federal Open Market Committee (FOMC) meeting tempered its gains. At 8 am, the local currency appreciated to 4.0830/0930 against the greenback, improving from Friday's close of 4.0885/0935.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid noted that market participants are closely observing whether the Negeri Sembilan state election will impact national politics. The early voting is set for Tuesday, July 28, with the official polling day scheduled for August 1, 2026. While the ringgit might draw strength from favorable domestic developments, external factors such as global market conditions continue to heavily influence sentiment.

Dr Mohd Afzanizam highlighted that the market is expected to remain cautious ahead of the FOMC meeting on July 28-29. The increased likelihood of a rate hike has been supporting the US dollar. Additionally, elevated oil prices could exert upward pressure on inflation, potentially affecting the Federal Funds Rate, which in turn could influence trading in the ringgit.

The ringgit showed a mixed performance against a basket of major currencies at the opening. It strengthened against the Japanese yen to 2.4956/5018 from Friday's close of 2.4976/5008 and appreciated against the euro to 4.6530/6644 from 4.6556/6613. However, it weakened against the British pound, slipping to 5.4516/4650 from 5.4442/4509.

In the regional currency market, the local currency edged higher against the Indonesian rupiah at 227.3/227.9 from 227.6/227.9 at Friday's close and strengthened against the Philippine peso to 6.60/6.62 from 6.61/6.62. Conversely, it weakened against the Thai baht to 12.1431/1790 from 12.1414/1606 and eased versus the Singapore dollar to 3.1676/1756 from 3.1667/1708 at Friday's close.