Kuala lumpur: The ringgit is projected to trade between RM4.22 and RM4.24 against the US dollar in the upcoming week, with the US Federal Reserve anticipated to maintain its policy rate, an analyst has stated. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid attributes this forecast to the forthcoming Federal Open Market Committee (FOMC) meeting, scheduled for July 29-30, 2025.

According to BERNAMA News Agency, based on the interest rate futures market, it is expected that the Fed will hold the Federal Funds Rate steady at 4.50 percent. Technical indicators currently place the US dollar-ringgit exchange rate within a neutral zone. Meanwhile, Stephen Innes, managing partner at SPI Asset Management, forecasts that the ringgit will trade within a narrow range of 4.2080-4.2280, with trade-related headlines and external sentiment continuing to influence short-term direction.

From a Friday-to-Friday perspective, the ringgit concluded the week stronger against the greenback, closing at 4.2195/2245 compared to 4.2410/2455 previously. However, the local currency traded lower against a basket of major currencies. Specifically, the ringgit depreciated against the Japanese yen to 2.8529/8565 from 2.8517/8549 and declined versus the euro to 4.9507/9566 from 4.9336/9388 at the end of the previous week. Conversely, it gained against the British pound, improving to 5.6786/6853 from 5.6999/7060.

Against ASEAN currencies, the ringgit demonstrated an upward trend. The local currency firmed against the Singapore dollar to 3.2937/2978 from 3.3027/3065, strengthened versus the Thai baht to 13.0268/0478 from 13.3027/3065, rose against the Indonesian rupiah to 258.5/258.9 from 260.2/260.6 previously, and improved against the Philippine peso to 7.38/7.40 from 7.41/7.43 last Friday.