Ringgit May Hit RM4.10 as Fed Hike Looms

The ringgit's value may exceed RM4.10 against the US dollar if the Federal Reserve raises interest rates in response to renewed inflationary pressure, according to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid.

Afzanizam noted that the US interest rate and resulting strength of the dollar are a more immediate influence on the ringgit than the economic benefits Malaysia might receive from elevated oil prices.

The Fed will meet on September 15 and 16, with its interest-rate decision scheduled for September 16. While some economists expect a rate hike, most currently anticipate rates to remain unchanged for the remainder of 2026, according to a Reuters poll published on August 17.