Ringgit to Hold Ground Against USD Amid Fed Rate Hike Speculation
The ringgit is expected to remain range-bound against the US dollar next week as investors wait for further cues from Federal Reserve officials on potential rate hikes, according to Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid.
Dr Afzanizam noted that several Fed officials will be sharing their thoughts with the public, which may provide more insights into their thought process regarding further interest rate increases.
The US Federal Reserve has forecast another 25-basis point hike this year, and Dr Afzanizam believes this will lead to a degree of conviction for rate hikes in the months to come.
As a result, the ringgit-dollar exchange rate is expected to stay cautious next week, with a predicted range between RM4.06 and RM4.09.