KUALA LUMPUR: The ringgit closed lower against the US dollar as the market remained jittery as it awaited the outcome of the US Federal Reserve's two-day policy meeting while also digesting Bank Negara Malaysia's decision to keep the overnight policy rate (OPR) at 1.75 per cent in the final 2021 meeting.
At 6 pm, the local note decreased versus the greenback to 4.1530/1550 from 4.1480/1495 at Tuesday's close.
OANDA Asia Pacific senior market analyst Jeffrey Halley said the pre-FOMC (Federal Open Market Committee) jostling continues with the US dollar rising overnight, despite US yields heading slightly lower.
"The Fed's tapering looks to be priced in now and the greenback could fall should the FOMC cling on to its transitory inflation forecast and 2023 hiking path. A higher monthly tapering could frighten markets though and see US yields and the US dollar move sharply higher. It is very much a binary outcome tonight," he said.
At the close, the ringgit was traded mixed against a basket of major currencies including the British pound.
The local note rose against the Japanese yen to 3.6478/6499 from 3.6543/6556 and further strengthened vis-a-vis the British pound to 5.6585/6612 from 5.6587/6607 previously.
However, it remained unchanged against the Singapore dollar at 3.0781/0798 from 3.0781/0796 at Tuesday's close and reversed its gains against the euro to 4.8142/8165 from 4.8104/8122 yesterday.