Ringgit Forecast to Hold Ground Against USD Amid Fed Rate Hike Anticipation

The Malaysian ringgit is expected to trade within a tight range against the US dollar next week, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.

This comes as investors remain cautious ahead of key monetary policy decisions by the United States Federal Reserve (Fed) and the Bank of Japan (BOJ).

The Fed's Federal Open Market Committee (FOMC) meeting is expected to raise its policy rate by 25 basis points, which has lent support to the US dollar in the foreign exchange market.

The ringgit may remain within a tight range of between RM4.06 and RM4.08 against the US dollar next week, said Dr Mohd Afzanizam.