Ringgit opens higher vs US dollar ahead of FOMC meeting

KUALA LUMPUR: The Malaysian ringgit started the day stronger against the US dollar on Friday, ahead of the upcoming Federal Open Market Committee (FOMC) meeting in the United States on September 15-16, 2026. By 8am, the local currency had risen to 4.0630/4.0730 against the greenback, up from last Friday’s close of 4.0685/4.0725.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the positive sentiment to the Bank of Japan's (BOJ) interest rate decision on September 18. He also highlighted that the current state of crude oil prices suggests that inflationary pressures may persist, with Brent crude oil trading around US$107 per barrel.

Additionally, the shutdown of the East-West oil pipeline by the Saudi government and the postponement of a meeting between Iran and the Gulf states have raised concerns about potential vulnerabilities in oil supplies from Western Asia. Consequently, a risk-averse market sentiment is anticipated, and the ringgit is expected to trade within a narrow range of RM4.07 to RM4.08 today.

At the opening bell, the ringgit exhibited mixed performance against a range of major currencies. It strengthened against the euro, now trading between 4.7106/4.7222 compared to last Friday’s 4.7178/4.7225. The ringgit also rose against the British pound, now between 5.4952/5.5087 from 5.4961/5.5015, but was weaker versus the Japanese yen, now at 2.6478/2.6545 from 2.6400/2.6428.

The local currency strengthened against several Asean currencies, including the Singapore dollar (3.2060/3.2144), Thai baht (12.2731/12.3092), and Indonesian rupiah (230.7/231.3).