Ringgit Holds Steady as Markets Await Fed Policy Decision

Ringgit Steady Against Greenback Ahead of Fed Meeting Tomorrow

The ringgit held relatively firm against the US dollar on Monday as investors adopted a cautious stance ahead of the US Federal Reserve’s policy meeting tomorrow, where markets expect further clarity on the central bank’s near-term rate trajectory.

At the close, the local currency traded at RM4.14–RM4.15 per US dollar, broadly unchanged from last week’s levels. Dealers said trading conditions remained measured, with most market participants refraining from taking aggressive positions until the Federal Open Market Committee (FOMC) delivers its updated macroeconomic assessment.

Market strategists noted that expectations of a dovish tilt have been building over the past fortnight, driven by moderating US inflation readings and softer labour-market indicators. However, the Fed is still widely anticipated to adopt a cautious tone, reinforcing its data-dependent approach rather than committing to an immediate policy shift.

Regional currencies posted mixed performances, with the Singapore dollar and Thai baht edging slightly higher, while the Indonesian rupiah weakened on continued portfolio outflows.

Bank dealers said the ringgit’s relative stability reflects improving domestic sentiment amid ongoing fiscal reforms and steady foreign interest in Malaysian government securities. Nevertheless, they cautioned that volatility may increase should the Fed surprise markets with a more hawkish-than-expected statement.

Analysts expect the ringgit to trade within a narrow band ahead of the FOMC announcement, with a bias towards modest strengthening if the Fed signals greater confidence in the disinflation trend.