Ringgit Inches Up Against US Dollar Ahead of Fed Decision

The ringgit closed marginally higher against the US dollar on Wednesday, July 29, 2026, as investors stayed on the sidelines awaiting the outcome of the Federal Open Market Committee meeting later that night.

At 6 pm, the local currency appreciated to 4.0875/0915 against the greenback, edging up from Tuesday's close of 4.0885/0930, according to a Bernama report filed by Abdul Hamid A Rahman.

A Market in Wait-and-See Mode

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit remained largely range-bound against the US dollar, with other Asian currencies showing similar trends as traders and investors held back ahead of the FOMC's decision.

“The US dollar could receive a boost should the Federal Reserve adopt a hawkish tone, as elevated crude oil prices may suggest that the decline in the June inflation rate is temporary,” he told Bernama.

Geopolitical Tensions Lift Oil Prices

Dr Mohd Afzanizam also pointed to fluid developments in West Asia, following reports that the US military had intercepted Iranian ballistic missiles launched at its forces. Global crude oil prices subsequently climbed.

West Texas Intermediate crude oil rose 3.67% to US$82.17 per barrel, while Brent crude rose 3.79% to US$87.28 per barrel.

Mixed Performance Against Other Currencies

The ringgit traded lower against a basket of major currencies at the close. It eased against the Japanese yen to 2.4982/5008 from 2.4948/4976, depreciated against the euro to 4.6561/6606 from 4.6429/6480, and declined versus the British pound to 5.4351/4405 from 5.4287/4347.

Regional Currencies Also Weigh

The local currency also lost ground against ASEAN peers. It weakened against the Indonesian rupiah to 226.1/226.5 from 226.0/226.4, declined versus the Singapore dollar to 3.1632/1666 from 3.1603/1640, shed against the Thai baht to 12.1971/2138 from 12.1494/1681, and slid against the Philippine peso to 6.65/6.67 from 6.63/6.64.