KUALA LUMPUR, Oct 24 — The ringgit is expected to trade within a narrow range of RM4.07 to RM4.08 against the US dollar next week as investors monitor the outcome of the US Federal Open Market Committee (FOMC) meeting scheduled for October 27-28.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors will also look for clues on the Federal Reserve’s (Fed) monetary policy direction from the FOMC statement and subsequent press conference, with markets expecting the Fed funds rate to remain unchanged at 3.75 to 4.00 per cent.
“Essentially, the Fed’s assessment of inflation and the prevailing market conditions surrounding artificial intelligence investments and equity valuations will be critical elements in shaping market confidence.
“More importantly, it is whether there will be any change in tone regarding the current monetary policy stance and the outlook for current and future inflation rates,” he told Bernama.
Hence, he said the US dollar-ringgit pair is expected to trade within a narrow range.
Meanwhile, on a Friday-to-Friday basis, the ringgit eased against the greenback to 4.0835/0875 from 4.0795/0835 a week earlier.
The local currency traded mostly lower against a basket of other major currencies during the week.
It inched down vis-a-vis the Japanese yen to 2.6076/6103 from 2.5831/5895 on the previous Friday and depreciated against the British pound to 5.4633/4687 from 5.4396/4449, but it gained versus the euro to 4.5735/5780 from 4.5911/5956 a week earlier.
The ringgit traded mostly higher against Asean currencies.
It climbed vis-a-vis the Thai baht to 12.0985/1154 from 12.2101/2268 a week earlier, inched up against the Indonesian rupiah to 225.8/226.1 from 226.3/226.6 and went up against the Philippine peso to 6.42/6.43 from 6.48/6.49
The local note, however, declined versus the Singapore dollar to 3.1952/1986 from 3.1889/1922 at the end of last week. — Bernama
