Ringgit Seen Holding Steady Against Dollar Next Week as Fed Speeches Loom

KUALA LUMPUR — The ringgit is expected to trade in a tight band against the US dollar next week, with investors awaiting commentary from multiple US Federal Reserve officials, according to an analyst.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a lineup of Fed policymakers is set to share their outlooks publicly, offering potential clues on the central bank’s direction.

“With the risk of higher fuel prices persisting, more clarity on their policy thinking may emerge,” he told Bernama.

Citing the latest Fed projections, Mohd Afzanizam noted that another 25-basis-point rate hike is anticipated this year. “This underscores the degree of conviction behind future rate moves,” he added.

As a result, the ringgit is likely to remain cautious, with the dollar-ringgit pair expected to trade between RM4.06 and RM4.09 next week.

On a Friday-to-Friday basis, the ringgit weakened slightly to 4.0795/0840 from 4.0685/0725 the prior week. However, it fared better against a basket of major currencies, gaining against the British pound (5.4543/4603 from 5.4961/5015), the Japanese yen (2.5829/5860 from 2.6400/6428), and the euro (4.6849/6901 from 4.7178/7225).

The local currency also strengthened against most ASEAN peers, rising against the Singapore dollar (3.1933/1971 from 3.2091/2125), the Thai baht (12.2383/2562 from 12.3072/3241), and the Indonesian rupiah (229.7/230.0 from 231.0/231.3). It slipped marginally against the Philippine peso, however, falling to 6.50/6.51 from 6.49/6.50.

– Bernama

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