Ringgit Falls Against US Dollar Amid Fed Rate Hike Speculation

The ringgit ended lower against the US dollar on Friday as investors closely monitor the debate over interest rate hikes in the United States. The market is awaiting the Federal Open Market Committee meeting scheduled for September 15 and 16, which may bring a decision to raise rates.

Although the US Federal Reserve has kept interest rates unchanged so far in 2026, hawkish remarks by Fed Chair Kevin Warsh at the Jackson Hole symposium have increased expectations of a rate hike this month. The ringgit was quoted at 4.0425/0465 against the US dollar compared with Thursday's close of 4.0405/0445.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was fairly stable despite market uncertainties. The local note weakened against several major currencies, including the euro, British pound, and Japanese yen.