Ringgit to Trade in Tight Range Amid Fed and BOJ Rate Hikes

The Malaysian ringgit is expected to trade within a tight range of RM4.06 to RM4.08 against the US dollar next week, according to Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid.

He said investors will be cautious ahead of key monetary policy decisions by the United States Federal Reserve (Fed) and the Bank of Japan (BOJ), which are expected to raise their respective policy rates by 25 basis points.

The Fed's latest economic projections, including GDP growth, inflation, unemployment rate, and federal funds rate, will also be closely monitored, Dr Afzanizam added.

He noted that expectations of a rate hike by the US Fed have supported the US dollar in the foreign exchange market, but external developments such as the sharp rise in crude oil prices due to the intensifying US-Israel-Iran conflict may influence market sentiment.