Ringgit Forecast: Tight Range Ahead of Fed, BOJ Rate Decisions

The ringgit is expected to trade within a tight range against the US dollar next week due to cautious investor sentiment ahead of key monetary policy decisions by the United States Federal Reserve (Fed) and the Bank of Japan (BOJ).

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that both central banks are expected to raise their respective policy rates by 25 basis points, which will support the US dollar.

The ringgit is likely to remain within a range of RM4.06 and RM4.08 against the US dollar next week, Dr Mohd Afzanizam predicted, citing expectations of a rate hike by the US Fed as influencing market sentiment.