Ringgit to trade between RM4.06 and RM4.09 against US dollar next week as as Fed officials weigh further rate hike

KUALA LUMPUR, Sept 19 — Analysts predict the ringgit's exchange rate will remain within a narrow band against the US dollar in the upcoming week, drawing attention to remarks made by several Federal Reserve officials, stated Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd. The Federal Reserve officials are anticipated to provide their perspectives, which could offer valuable insights into their reasoning, particularly given the potential for ongoing increases in fuel prices, he noted to Bernama.

The latest forecast from the US Federal Reserve indicates another 25-basis point interest rate hike this year. As such, the level of certainty surrounding the rate hike in the coming months is unclear. Consequently, the ringgit-dollar exchange rate is expected to maintain a cautious range next week. The analysts anticipate the ringgit to trade between RM4.06 and RM4.09 against the US dollar during this period.

Over the course of a week, the ringgit experienced a decline against the US dollar, falling from 4.0685/0725 to 4.0795/0840. However, the local currency strengthened against a basket of major currencies throughout the week. The ringgit surged against the British pound, rose against the Japanese yen, and appreciated against the euro compared to the previous Friday's rates.

It also showed an overall positive trend against various currencies in ASEAN, including the Singapore dollar, Thai baht, and Indonesian rupiah. Nevertheless, the ringgit experienced a slight decrease against the Philippine peso, moving from 6.49/6.50 to 6.50/6.51.