Ringgit opens higher vs US dollar ahead of FOMC meeting

KUALA LUMPUR: The Malaysian ringgit began the day at a higher level against the US dollar as investors remained cautious prior to the upcoming Federal Open Market Committee (FOMC) meeting scheduled for September 15-16, 2026. By 8am, the local currency had risen to between 4.0630 and 4.0730 against the US dollar from last Friday's closing rate of 4.0685-4.0725.

Afzanizam Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, suggested that the Bank of Japan's (BOJ) interest rate decision on September 18 is also impacting market sentiment. Rashid explained that the current situation surrounding crude oil prices indicates that inflationary pressures may persist, with Brent crude now sitting at around US$107 per barrel.

"The shutdown of the East-West oil pipeline by the Saudi government and the postponement of a meeting between Iran and the Gulf states highlight the vulnerability of oil supplies from the West Asia region," he pointed out. Currently, market sentiment is leaning towards risk-off mode, which is expected to keep the ringgit trading between RM4.07 and RM4.08 throughout the day, according to Rashid.

At the opening, the ringgit displayed mixed performance against various major currencies. It strengthened against the euro to between 4.7106 and 4.7222 from Friday's range of 4.7178-4.7225. The ringgit also rose against the British pound to between 5.4952 and 5.5087 from 5.4961-5.5015 but fell against the Japanese yen to between 2.6478 and 2.6545 from 2.6400-2.6428.

The local currency exhibited an uptrend against ASEAN currencies, strengthening against the Singapore dollar to between 3.2060 and 3.2144 from 3.2091-3.2125, appreciating against the Thai baht to between 12.2731 and 12.3092 from 12.3072-12.3241, and rising against the Indonesian rupiah to between 230.7 and 231.3 from 231.0-231.3.

Finally, the ringgit marginally increased against the Philippine peso to between 6.48 and 6.50 from Friday's closing range of 6.49-6.50.