Kuala Lumpur, – The Malaysian ringgit is projected to remain stable and trade within a narrow range next week, hovering between RM3.94 and RM3.96 against the US dollar. This cautious outlook is due to investors preferring to wait for important economic data from the United States before making more aggressive moves.
According to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid, the main focus for the market this week is the US Federal Open Market Committee (FOMC) meeting scheduled for April 28 and 29. Most analysts expect the Federal Funds Rate (FFR) to remain unchanged at 3.75%.
Although the decision to hold rates is widely anticipated, the FOMC’s assessment of future interest rate direction will be closely watched. In addition, several critical economic indicators such as the Conference Board Consumer Confidence Index, ISM Manufacturing Index, and Personal Consumption Expenditure (PCE) inflation data will also be released.
“These data releases will significantly influence market sentiment. Therefore, the US dollar-ringgit pair is expected to stay in a tight range as market participants remain cautious,” Dr Mohd Afzanizam told Bernama.
At Friday’s close, the ringgit ended weaker against the US dollar at 3.9630/9670, compared to 3.9505/9545 at the end of the previous week. However, the local currency performed better against several major and regional currencies.
Ringgit Performance This Week:
- Stronger against the British pound (5.3429/3483), euro (4.6312/6358), and Japanese yen (2.4808/4834).
- Firm against the Singapore dollar (3.1009/1043), Thai baht (12.2183/2363), and Philippine peso (6.52/6.53).
- Slightly weaker against the Indonesian rupiah (230.0/230.3).
This analysis reflects market confidence in the ringgit’s short-term stability, despite ongoing global uncertainties. Investors are advised to closely monitor US data developments, as any surprises could trigger more significant movements in the currency market.
Stay tuned for the latest updates on local and international financial markets.
