Ringgit Rises Ahead of Fed Rate Decision Amid Oil Price Volatility

The Malaysian ringgit strengthened against major currencies on Monday, ahead of the US Federal Reserve's interest rate decision. The central bank is set to meet on Tuesday and Wednesday to decide on interest rates. Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that investors remained cautious due to the upcoming meeting.

Crude oil prices fell over the weekend after the US and Iran halted hostilities, with West Texas Intermediate crude dropping 6.98% to $83.08 per barrel. Brent crude also declined by 7.94% to $89.10 per barrel. Afzanizam cautioned that developments remain fluid and it's too early to assess the situation.

The ringgit traded within a tight range against the US dollar, climbing to 4.0835/4.0875 from Friday's close of 4.0885/4.0935. It also appreciated against other major currencies, including the Japanese yen, euro, and British pound.