Ringgit strengthens against dollar ahead of FOMC meeting
Malaysia’s currency strengthened against the dollar on Monday as investors awaited the Federal Reserve’s policy meeting. The ringgit traded at 4.2145 per dollar at 8 a.m., compared with 4.2210 at the close on Friday.
Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid said September’s consumer price index of 3 percent fell below forecasts of 3.1 percent. He expects the Fed to cut interest rates a second time, with more reductions possible in 2026 as the central bank prioritizes employment growth.
The narrowing gap between American and Malaysian benchmark rates should support the ringgit, Mohd Afzanizam said. Bank Negara Malaysia will likely maintain its overnight policy rate through 2025, which favors the local currency.
The ringgit gained against most regional currencies but weakened against the Thai baht.
