Ringgit expected to hover between RM4.06 and RM4.08 against US dollar next week

KUALA LUMPUR, Sept 12 — Analysts anticipate the Malaysian ringgit to fluctuate between RM4.06 and RM4.08 against the US dollar over the upcoming week, as investors maintain a cautious outlook awaiting crucial monetary policy announcements from the United States Federal Reserve (Fed) and the Bank of Japan (BOJ). Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, highlighted that the primary focus next week will be on the Federal Open Market Committee (FOMC) and BOJ meetings, which are anticipated to increase their policy rates by 25 basis points.

Market participants will also closely monitor the Fed’s latest economic projections, including GDP growth, inflation, the unemployment rate, and the federal funds rate. Dr Afzanizam explained that the expectation of a US rate hike has bolstered the US dollar's strength in the foreign exchange market. However, external factors, notably the surge in crude oil prices due to the ongoing US-Israel-Iran conflict, are also projected to impact market sentiment.

Brent crude oil prices have risen to approximately US$104.64 (RM425.91) per barrel. On a Friday-to-Friday basis, the ringgit weakened to 4.0685/0725 from 4.0425/0465 the previous week. It traded lower against various major currencies, including the British pound, Japanese yen, euro, Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.