THE national currency is expected to trade within a narrow range against the US dollar next week as investors adopt a cautious stance ahead of the upcoming US Federal Open Market Committee (FOMC) meeting.
Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said market attention is firmly focused on the FOMC meeting scheduled for 28-29 October 2025.
"A 25-basis-point interest rate cut, as projected, has largely been anticipated by the market. The key question is how the US Federal Reserve navigates its monetary policy direction if the US government shutdown continues without resolution," he told Bernama.
Based on these developments, Dr Mohd Afzanizam said the ringgit is expected to remain in a tight range of around 4.22 to 4.23 against the US dollar next week.
Meanwhile, the US Consumer Price Index (CPI) for September, released yesterday, was the first major economic report since the government shutdown on 1 October.
The data showed the core CPI rose to 330.54 in September from 329.79 in the previous month, while overall inflation eased to 3.0 per cent, below initial expectations.
“The announcement provides further guidance on the Fed’s interest rate trajectory, indicating that inflationary pressures are gradually easing,” Dr Mohd Afzanizam added.
On a weekly comparison, the ringgit strengthened against the US dollar, closing at 4.2210/2255 from 4.2240/2275 a week earlier. It also rose against other major currencies and regional peers.
The local unit appreciated against the Japanese yen to 2.7592/7623 from 2.8218/8244, gained against the euro to 4.9010/9062 from 4.9421/9462, and rose versus the British pound to 5.6232/6292 from 5.6741/6788.
It also strengthened against the Singapore dollar to 3.2484/2521 from 3.2635/2665, the Thai baht to 12.8768/8952 from 12.9301/9471, the Philippine peso to 7.20/7.21 from 7.26/7.27, and the Indonesian rupiah to 254.2/254.6 from 254.6/254.9. - October 25, 2025
