Ringgit ends lower against US dollar as US rate hike debate persists

KUALA LUMPUR: The Malaysian ringgit closed lower against the US dollar on Friday, amid ongoing debate about potential interest rate hikes in the United States. As the market keeps a close eye on the Federal Open Market Committee meeting, which is set for September 15 and 16, the US Federal Reserve (Fed) has kept interest rates steady so far in 2026. Yet, remarks by Fed chair Kevin Warsh during the Jackson Hole symposium have fueled expectations of a rate hike this month.

At 6pm, the ringgit was trading at 4.0425/4.0465 against the US dollar, a slight decline from yesterday's close of 4.0405/4.0445. Despite market uncertainties, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid noted that the ringgit remained relatively stable.

Looking at the ringgit's performance against major currencies, it slipped against the euro, moving from 4.6894/4.6940 yesterday to 4.6962/4.7008. The local currency also weakened against the British pound, dropping from 5.4539/5.4593 to 5.4663/5.4717. Similarly, the ringgit depreciated against the Japanese yen, going from 2.5838/2.5865 to 2.5832/2.5860.

In regional markets, the ringgit was mostly lower compared to other currencies. It inched up slightly against the Philippine peso, trading at 6.45/6.46 from yesterday's 6.46/6.47. However, the local note declined against the Singapore dollar, moving from 3.1850/3.1884 to 3.1888/3.1923. The ringgit also fell against the Thai baht, moving from 12.2421/12.2598 to 12.2693/12.2863, and was lower against the Indonesian rupiah, slipping from 228.5/228.8 to 229.1/229.4 at yesterday's close.