Malaysian Ringgit Fluctuates Ahead of US Federal Reserve Meeting

The Malaysian ringgit fluctuated against the US dollar between September 14 and September 15, 2026, driven by investor caution ahead of key central bank meetings. After opening higher on September 14 at 4.0630/0730, the currency depreciated to close the day at 4.0735/4.0770. It saw a brief recovery on Tuesday morning, opening at 4.0705/0775, before falling sharply to 4.0835/4.0880 by Tuesday evening.

Market volatility coincided with a rise in the US Dollar Index to 99.641 points and the 10-year US Treasury note yield surpassing 5%. Data from the Chicago Mercantile Exchange indicated a 92.3% probability of an interest rate hike by the United States Federal Reserve, with bond market analysis suggesting a 25 basis point increase. Investors also remained attentive to the Bank of Japan's interest rate decision scheduled for September 18.

External economic pressures contributed to the instability, as Brent crude oil prices hovered between US$105.68 and US$107 per barrel. Supply vulnerabilities in West Asia, specifically a multi-week shutdown of the East-West oil pipeline by the Government of Saudi Arabia and the postponement of meetings between Iran and Gulf states, increased inflationary risks. While the ringgit showed intermittent strength against the euro and several ASEAN currencies, it generally weakened against the US dollar and the Japanese yen during the period.