Ringgit Gains on Majors but Slips vs US Dollar Ahead of Fed

The ringgit opened higher against most major currencies on Tuesday but lost ground against the US dollar, as lingering uncertainty over US-Iran negotiations weighed on market sentiment and traders turned their attention to a pivotal Federal Reserve policy meeting.

At 8am on July 28, 2026, the local currency stood at 4.0850/0900 against the greenback, easing from 4.0835/0875 at Monday's close.

What is driving the ringgit-US dollar pair

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the odds favour an interest rate rise in the United States, which would boost the value of the US dollar. He noted that traders and investors would be closely watching the US Federal Open Market Committee (FOMC) meeting scheduled for July 28 and 29.

“As such, the ringgit-US dollar pair is expected to continue to trade within a narrow range today,” he told Bernama.

The US-Iran negotiations also injected a layer of caution into the market, contributing to the ringgit's slight softening against the dollar.

Gains against major currencies

The ringgit traded higher against a basket of major currencies at the opening. It edged up against the Japanese yen to 2.4940/4973 from 2.4969/4994 at Monday's close, appreciated versus the euro to 4.6438/6495 from 4.6536/6581, and rose against the British pound to 5.4281/4348 from 5.4433/4486.

Mixed performance against regional peers

The local currency's performance was mixed against ASEAN currencies. It strengthened against the Singapore dollar to 3.1627/1669 from 3.1653/1686 and ticked up against the Thai baht to 12.1379/1589 from 12.1612/1775.

However, the ringgit weakened against the Indonesian rupiah to 226.8/227.2 from 226.7/227.0 at Monday's close, and was flat against the Philippine peso at 6.62/6.63.

What to watch

With the FOMC meeting underway, the ringgit's near-term trajectory against the US dollar will likely hinge on the tone of the Fed's policy statement and any signals about the pace of future rate adjustments. A hawkish tilt could add further pressure on the ringgit-dollar pair, while a more cautious outlook may offer the local currency some breathing room.