Ringgit Traders Cautious Ahead of US Rate Decision and Oil Price Jitters

The ringgit is expected to trade within a narrow range next week due to caution ahead of key domestic and external events, including the US Federal Reserve's interest rate decision.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the spotlight will be on the FOMC statement, especially how committee members assess inflation dynamics going forward. He expects traders to be cautious next week due to uncertainty over oil prices, which have risen substantially in July.

SPI Asset Management managing partner Stephen Innes agrees that crude oil prices will be a key driver of the ringgit's performance next week. He notes that Malaysia is an energy exporter and expects the ringgit to weaken against the US dollar if oil prices rise further.