Ringgit slips as US rate-hike speculation intensifies ahead of Fed meeting
The Malaysian ringgit fell modestly against the US dollar on Friday, pressured by renewed expectations of a Federal Reserve rate increase before the September policy meeting.
The ringgit ended Friday lower versus the US dollar, with the 6 pm rate at 4.0425/0465 compared with Thursday's 4.0405/0445. Market participants are closely watching the Federal Open Market Committee's September 15-16 session, after Fed Chair Kevin Warsh delivered hawkish remarks at the Jackson Hole symposium, reviving expectations of a rate hike this month. Although the Federal Reserve has left rates unchanged throughout 2026, the commentary has added pressure on emerging-market currencies.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit remains fairly stable despite the backdrop of uncertainty. Against a basket of major currencies, the ringgit weakened to 4.6962/7008 per euro and 5.4663/4717 per pound, and slipped to 2.5832/5860 per yen. Regional currency movements were mixed, with a slight rise versus the Philippine peso and declines versus the Singapore dollar, Thai baht and Indonesian rupiah.
How this story developed
- Aug 19 Fed officials warn higher rates may be needed if inflation stays elevated
- Sep 5 No injuries or deaths have been reported.
- Sep 5 U.S. Central Command announced the destruction of three Iran-linked oil tankers—M/T Downy off Kharg Island, M/T Stark 1 near Jask and M/T Kylo in the Gulf of Oman.
- Sep 6 Gold has dropped sharply since its January peak.
- Sep 6 He said Tehran’s response to US strikes would no longer be “proportionate”, adding that “the Americans have surely realised that the era of ‘proportionate responses’ has come to an end”.
- Sep 6 European markets stayed steady following the strong U.S. jobs report while the Fed awaits the August inflation data.
- Sep 7 Iran claimed to have hit an unmanned U.S. vessel in the Strait of Hormuz, which the U.S. dismissed as false.
- Sep 8 Iran announced it will double the price of fuel consumed beyond its quota.
- Sep 8 Iran’s Fars news agency reported an explosion heard in the southern Jask area off the Gulf of Oman and east of the Strait of Hormuz.
- Sep 10 Oil prices have risen above $95 a barrel amid renewed Middle‑East tensions.
- Sep 10 New reporting highlights a sharp inflation jump and rising fuel costs, reinforcing expectations of a deposit‑rate increase.
- Sep 10 The ECB implemented a 0.25‑point rate increase across its three principal rates.
- Sep 11 Fed minutes revealed a 9‑3 vote to keep rates near 3.6% and a drop in market odds for a September hike to about 67%.
- Sep 11 August US CPI held steady at 3.4% year‑over‑year and core CPI fell to 2.4%.
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