Ringgit expected to trade in tight range against US dollar next week
KUALA LUMPUR: The ringgit is expected to trade within a tight range against the US dollar next week, with investors remaining cautious ahead of key monetary policy decisions by the United States Federal Reserve (Fed) and the Bank of Japan (BOJ).
KUALA LUMPUR: Analysts predict the ringgit will remain within a narrow range of RM4.06 to RM4.08 against the US dollar following the upcoming monetary policy decisions of key central banks. Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid highlighted the focus on the Federal Reserve's and Bank of Japan's rate hikes, with both institutions expected to increase their policy rates by 25 basis points.
Investor sentiment has been influenced by the anticipation of a US Fed rate increase, which has bolstered the value of the US dollar. In addition to rate decisions, external factors such as the surge in crude oil prices due to the escalating US-Israel-Iran conflict are expected to impact market sentiment. Over the past week, the ringgit experienced a decline against major currencies, including a drop against the British pound, Japanese yen, and euro, as well as against ASEAN currencies like the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
