THE ringgit strengthened against the US dollar in early trading on Wednesday, supported by improving risk appetite and cautious investor positioning ahead of the United States Federal Reserve’s policy decision.
At 8am, the local currency rose to 3.9085/9315 against the greenback, compared with Tuesday’s close of 3.9155/9200, as the US dollar struggled to gain momentum amid heightened global uncertainties.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit has remained resilient despite external shocks, noting that the weaker US dollar environment could support further gains.
“As such, the ringgit could stage further appreciation today although it will remain in a narrow range trade,” he told Bernama.
He said the US Dollar Index falling below the 100-point level reflects growing caution among investors ahead of the Federal Open Market Committee meeting later in the day.
“The DXY falling below 100 points indicates that market participants are adopting a more cautious stance, with attention now focused on the Fed’s policy direction tonight,” he said.
Mohd Afzanizam added that escalating tensions in West Asia, particularly involving Iran, have disrupted global energy markets and pushed fuel prices higher in the United States, weighing on consumer purchasing power and business costs.
“This development could have implications for US’ economic growth prospects and may influence the Fed’s tone.
“The delays in key diplomatic engagements between the US and China have added to global uncertainty, prompting investors to remain defensive in their positioning,” he added.
In broader currency trading, the ringgit opened mostly higher against major currencies. It strengthened against the Japanese yen and was marginally firmer versus the British pound, although it edged lower against the euro.
The local currency also traded stronger against most regional peers, gaining against the Singapore dollar, Indonesian rupiah, Philippine peso and Thai baht, reflecting relatively stable sentiment in regional markets. - March 18, 2026
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