Ringgit Expected to Trade Cautiously Next Week Amid Fed Decision and Oil Price Jitters

The Malaysian ringgit is expected to trade within the RM4.08-RM4.10 range against the US dollar next week, according to economists and analysts.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the spotlight will be on the interest rate decision by the US Federal Reserve (Fed) and the upcoming state election in Negeri Sembilan on August 1. Most economists are expecting the US interest rates to be maintained at 3.5-3.75 per cent.

Stephen Innes, managing partner of SPI Asset Management, expects crude oil prices to drive the ringgit next week. He believes a sustained rise in oil prices could influence the Fed's policy decision if officials become concerned that energy inflation is spreading into other parts of the economy.