KUALA LUMPUR: 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 Oct 27-28.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would also look for clues on the Federal Reserve’s (Fed) monetary policy direction in 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 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 was expected to trade within a narrow range.
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 weakened against the Japanese yen to 2.6076/6103 from 2.5831/5895 the previous Friday and depreciated against the British pound to 5.4633/4687 from 5.4396/4449. However, it strengthened against the euro to 4.5735/5780 from 4.5911/5956 a week earlier.
The ringgit traded mostly higher against ASEAN currencies.
It strengthened against the Thai baht to 12.0985/1154 from 12.2101/2268 a week earlier, edged up against the Indonesian rupiah to 225.8/226.1 from 226.3/226.6, and rose against the Philippine peso to 6.42/6.43 from 6.48/6.49.
However, the local note weakened against the Singapore dollar to 3.1952/1986 from 3.1889/1922 at the end of the previous week.