KUALA LUMPUR (Bernama): The ringgit is expected to remain range-bound against the US dollar this week as cautious sentiment prevails ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that market attention will centre on the FOMC meeting scheduled for Oct 28 and 29.
“The anticipated 25-basis-point rate cut has largely been priced in by the market. The key question now is how the Federal Reserve (Fed) will steer its policy direction should the United States government shutdown remain unresolved,” he told Bernama.
Against this backdrop, Mohd Afzanizam said that the ringgit is expected to continue trading within a narrow range between RM4.22 and RM4.23 against the US dollar next week.
Meanwhile, the US Consumer Price Index (CPI) for September was released yesterday, marking the first major economic report since the government shutdown began on Oct 1.
The latest data showed that the core CPI rose to 330.54 in September from 329.79 in the previous month, while the overall inflation rate eased to 3.0 per cent, which is lower than expected.
The data offered further clues on the US Federal Reserve’s interest rate trajectory, suggesting that inflationary pressures are moderating.
On a weekly basis, the ringgit firmed against the greenback, closing marginally higher at 4.2210/2255 compared with 4.2240/2275 last week.
The local note traded higher against a basket of major currencies and its Asean peers.
It appreciated against the Japanese yen to 2.7592/7623 from 2.8218/8244, strengthened versus the euro to 4.9010/9062 from 4.9421/9462, and gained against the British pound at 5.6232/6292 from 5.6741/6788, at last week’s close.
It rose against the Singapore dollar to 3.2484/2521 from 3.2635/2665, improved against the Thai baht to 12.8768/8952 from 12.9301/9471, expanded against the Philippine peso to 7.20/7.21 from 7.26/7.27, and enhanced versus the Indonesian rupiah at 254.2/254.6 from 254.6/254.9 previously. – Bernama
