Ringgit Set for Narrow Range Against USD Amid Fed Speeches

The Malaysian ringgit may trade within a narrow range against the US dollar next week due to market attention on speeches by several US Federal Reserve officials.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that these speeches could provide insights into the Fed's thought process, particularly in relation to higher fuel prices, which are likely to persist.

The US Federal Reserve has forecast another 25-basis point hike this year, and Mohd Afzanizam noted that this would show the degree of conviction for rate hikes in the months ahead.

As a result, he expects the ringgit-dollar exchange rate to remain cautious next week, with a range of RM4.06 to RM4.09.