Ringgit expected to trade steady ahead of Fed meeting
Malaysia’s currency will likely trade in a narrow band against the dollar next week as traders await the Federal Reserve’s policy decision, according to Bank Muamalat Malaysia’s chief economist. The ringgit should fluctuate between 4.22 and 4.23 per dollar as markets digest American inflation figures and prepare for the central bank meeting set for Oct. 28-29.
American consumer prices rose 3 percent in September, below analyst forecasts, giving Fed officials flexibility to reduce borrowing costs by a quarter point. The ringgit strengthened to 4.2210 from 4.2240 against the greenback over the past week. Malaysia’s currency also gained ground against the yen, euro, pound, and Southeast Asian currencies.
