Ringgit Seen Trading Within RM4.08-RM4.10 Range Next Week
The Malaysian ringgit is expected to trade within a narrow range against the US dollar next week due to caution ahead of key domestic and external events. According to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, the spotlight will be on the interest rate decision by the US Federal Reserve (US 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, and market participants will focus on the US Federal Open Market Committee statement, especially how committee members assess inflation dynamics going forward, as prevailing crude oil prices have risen substantially in July.
SPI Asset Management managing partner Stephen Innes expects crude oil prices to be the key driver of the ringgit next week amid uncertainty over the direction of oil prices. He said that a sustained rise could influence the US Fed's policy decision if officials become concerned that energy inflation is spreading into other parts of the economy.