Ringgit Set for Tight Trade Against US Dollar Next Week
The Malaysian ringgit is expected to trade within a narrow 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).
According to Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, market participants will be closely monitoring the Federal Open Market Committee (FOMC) and BOJ monetary policy meetings.
The Fed is expected to raise its policy rate by 25 basis points next week, while the BOJ is also expected to increase its policy rate by a similar margin. The focus for investors will be on the Fed's latest economic projections, including GDP growth, inflation, unemployment rates, and the federal funds rate.
Dr. Afzanizam noted that expectations of a rate hike by the US Fed have supported the value of the US dollar in foreign exchange markets.