Ringgit to Trade in Tight Range Ahead of US Rate Hike

The Malaysian ringgit is expected to trade within a narrow range against the US dollar next week, according to Bank Muamalat Malaysia Bhd's chief economist Dr. Mohd Afzanizam Abdul Rashid.

This cautious outlook is driven by investors' anticipation of key monetary policy decisions from the United States Federal Reserve (Fed) and the Bank of Japan (BOJ), with both central banks expected to raise their respective policy rates by 25 basis points next week.

The Fed's latest economic projections, including GDP growth, inflation, unemployment rate, and federal funds rate, will also be closely monitored by market participants, as expectations of a rate hike have lent support to the US dollar.