KUALA LUMPUR: The ringgit is expected to trade cautiously this week as investors await interest rate decisions from both the US Federal Reserve and Bank Negara Malaysia (BNM).
Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said sentiment remains fragile due to persistent tariff-related uncertainty. “Markets are watching the Federal Open Market Committee and BNM Monetary Policy Committee meetings closely. Any hint of a US rate cut could sway the ringgit, though cautious positioning will likely prevail,” he said.
Kenanga Investment Bank projects the ringgit to move within the 4.30–4.35 range against the US dollar, citing global headwinds and policy risk. It added that US-China trade developments remain a key swing factor. While BNM is expected to hold rates, any downgrade in Malaysia’s growth forecast could weigh on sentiment.
Kenanga also noted that a market-friendly outcome from the May 5 special parliamentary sitting could lend short-term support to the currency.
For the week, the ringgit closed stronger at 4.2560/2600 versus the US dollar, rebounding from 4.3705/3770 previously. It also gained against the euro (4.8297/8342), yen (2.9437/9467), and pound (5.6639/6692), while advancing broadly against ASEAN currencies including the Singapore dollar (3.2862/2898) and Thai baht (12.8697/8903). – BERNAMA
