KUALA LUMPUR — The ringgit closed mostly higher against regional currencies and was flat against the US dollar on Thursday, following the latest US Federal Open Market Committee (FOMC) decision to stand pat.

At 6pm, the local currency was flat at 4.0875/0930 against the greenback from Wednesday’s close of 4.0875/0915.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded within a narrow range following the FOMC decision overnight.

“The US Federal Reserve kept the federal funds rate unchanged at between 3.50 per cent and 3.75 per cent. However, the decision was not unanimous, with three of the 12 voting members favouring an increase in the benchmark interest rate.

“This suggests that the Fed may be leaning towards raising interest rates at its next FOMC meeting on September 15 and 16,” he told Bernama.

Mohd Afzanizam said the outlook had placed the US dollar in a favourable position.

“The Fed appears likely to raise interest rates, while higher crude oil prices could reverse the moderation in US inflation recorded in June during the second half of 2026.