Ringgit Predicted for Tight Trading Range Ahead of Fed, BOJ 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 and the Bank of Japan.

According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, both central banks are expected to raise their respective policy rates by 25 basis points next week. This will likely support the US dollar in the foreign exchange market.

The ringgit's trade range is predicted to be between RM4.06 and RM4.08 against the US dollar next week, with external developments such as the sharp rise in crude oil prices also influencing market sentiment.