Ringgit Surges as Fed Meeting Looms, Oil Prices Ease

The Malaysian ringgit strengthened against the US dollar and other major currencies on Monday as investors adopted a cautious stance ahead of the Federal Reserve's two-day policy meeting, which is expected to see another interest rate hike.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said trading was largely range-bound due to market participants' reluctance to take large positions before the Federal Open Market Committee meets on July 28 and 29.

The ringgit's gain was also supported by easing crude oil prices, which slumped sharply following a de-escalation of tensions between the US and Iran. West Texas Intermediate crude fell 6.98% to $83.08 per barrel, while Brent crude dropped 7.94% to $89.10 per barrel.

However, Dr Mohd Afzanizam cautioned that it is still too early to assess the situation as developments remain highly fluid.