Ringgit Traders Prepare for FOMC and BOJ Rate Hikes

The Malaysian ringgit is expected to trade within a narrow corridor against the US dollar in the coming week, according to Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd.

This consolidation reflects a market in wait-and-see mode, balancing the supportive tailwinds of rising crude oil prices against the strengthening dollar driven by expectations of tighter monetary policy in the United States.

The primary focus for investors next week will be the monetary policy meetings of the Federal Open Market Committee (FOMC) and the Bank of Japan (BOJ), both of which are widely expected to raise their respective policy rates by 25 basis points.