Ringgit Trapped in Tight Range Ahead of Key Rate Decisions
The Malaysian ringgit is expected to trade within a narrow range against the US dollar next week, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
This prediction comes as investors remain cautious ahead of key monetary policy decisions by 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.
The Fed's latest economic projections, including gross domestic product (GDP) growth, inflation, unemployment rate, and federal funds rate, will be closely monitored by market participants.
Dr Mohd Afzanizam noted that expectations of a rate hike by the US Fed have lent support to the US dollar, which is likely to remain a key driver in the foreign exchange market next week.