US Fed Tone in Focus: Ringgit Set for RM4.07-4.08 Range

Quick Answer: The ringgit is projected to trade between RM4.07 and RM4.08 against the US dollar next week, as investors wait for the FOMC meeting on October 27-28. Markets expect the Fed funds rate to stay at 3.75 to 4.00 per cent, so the Fed’s tone on inflation and AI-linked equity valuations will shape market confidence. The source names no Bursa-listed company, so this is a currency story to track, not a stock call.

Will the US Fed Change Its Tone Before the Ringgit Moves?

Will the US Fed change its tone? Ringgit waits for clues — The ringgit waits for clues from the US Federal Reserve ahead of the FOMC meeting.

The FOMC statement and press conference fall on October 27-28. Markets expect the Fed funds rate to remain unchanged at 3.75 to 4.00 per cent.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Fed’s assessment of inflation and AI investments and equity valuations will be critical. He added that the real question is whether the monetary policy tone changes.

Dr Mohd Afzanizam expects the ringgit to trade within a narrow range against the US dollar as a result. On a Friday-to-Friday basis, the pair moved to 4.0835/0875 from 4.0795/0835 a week earlier.

How Far Did the Ringgit Slide Against Major Currencies?

The ringgit traded mostly lower against a basket of major currencies during the week. Investors may want to watch the moves below.

Japanese yen: 2.6076/6103, from 2.5831/5895 the previous Friday (weaker ringgit)
British pound: 5.4633/4687, from 5.4396/4449 (weaker ringgit)
Euro: 4.5735/5780, from 4.5911/5956 (stronger ringgit)

The euro was the only major pair where the ringgit gained ground. The yen and pound both moved against the local note.

Which ASEAN Currencies Did the Ringgit Beat This Week?

The ringgit traded mostly higher against ASEAN currencies. Its gains were broad across three of the four pairs quoted.

Thai baht: 12.0985/1154, from 12.2101/2268 a week earlier
Indonesian rupiah: 225.8/226.1, from 226.3/226.6
Philippine peso: 6.42/6.43, from 6.48/6.49

The Singapore dollar was the exception. The ringgit declined to 3.1952/1986 from 3.1889/1922 at the end of the previous week.

Key Takeaways

The ringgit is projected to trade between RM4.07 and RM4.08 against the US dollar next week.
The FOMC meets on October 27-28, with the Fed funds rate expected at 3.75 to 4.00 per cent.
Dr Mohd Afzanizam says the Fed’s view on inflation and AI-linked valuations matters most.
The ringgit weakened against the yen, pound and US dollar, but gained against the euro and most ASEAN currencies.

Investors tracking AI-linked valuations can compare tools in AI Stock Analysis for Malaysians. Always do your own research before making any investment decision. This article is general information, not personal financial advice.

Frequently Asked Questions

What is the ringgit’s expected range against the US dollar next week?

The ringgit is expected to trade between RM4.07 and RM4.08 against the US dollar next week. Investors are waiting for the FOMC meeting outcome on October 27-28.

When is the next FOMC meeting for the US Federal Reserve?

The FOMC meeting is scheduled for October 27-28. Markets will watch the statement and the press conference that follow for clues on monetary policy.

What interest rate do markets expect from the Fed?

Markets expect the Fed funds rate to remain unchanged at 3.75 to 4.00 per cent. The key focus is whether the Fed changes its tone on inflation.

Did the ringgit strengthen or weaken against the Japanese yen this week?

The ringgit eased against the Japanese yen, moving to 2.6076/6103 from 2.5831/5895 the previous Friday. The move was one of the weaker results for the ringgit among major currencies.

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