KUALA LUMPUR, July 26 — The ringgit is expected to hover between RM4.22 and RM4.24 next week as the US Federal Reserve (US Fed) is anticipated to maintain its policy rate.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said this outlook is tied to the upcoming US Federal Open Market Committee (FOMC) meeting, scheduled for July 29 to July 30.
"Based on the interest rate futures market, the US Fed is likely to keep the Federal Funds Rate steady at 4.50 per cent. Technical indicators suggest that the US dollar-ringgit exchange rate is currently in a neutral zone," he told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes expects the ringgit to trade within a relatively narrow range of 4.2080 - 4.2280, with trade-related headlines and external sentiment continuing to drive short-term direction.
On a Friday-to-Friday basis, the ringgit ended the week better against the greenback, closing at 4.2195/2245 versus 4.2410/2455 previously.
However, the local note traded lower against a basket of major currencies.
The ringgit depreciated vis-à-vis the Japanese yen to 2.8529/8565 from 2.8517/8549 and declined versus the euro to 4.9507/9566 from 4.9336/9388 at the end of last week.
However, it gained against the British pound to 5.6786/6853 from 5.6999/7060 on Friday.
Against Asean currencies, the ringgit trended higher.
The local note firmed against the Singapore dollar to 3.2937/2978 from 3.3027/3065, strengthened versus the Thai baht to 13.0268/0478 from 13.3027/3065, rose versus the Indonesian rupiah to 258.5/258.9 from 260.2/260.6 previously, and improved against the Philippine peso to 7.38/7.40 from 7.41/7.43 on Friday.
— Bernama
