KUALA LUMPUR, July 4 — The ringgit is expected to trade between RM4.05 and RM4.07 against the US dollar next week, with market attention likely to centre on the United States Federal Open Market Committee (FOMC) minutes and Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting.
Both events fall on Thursday, July 9.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said traders, investors and economists would be watching the FOMC minutes closely for clues on the direction of US interest rates, especially given the absence of forward-looking guidance at the June FOMC meeting.
“We believe BNM will keep the overnight policy rate (OPR) steady at 2.75 per cent as there are no compelling reasons to change the prevailing monetary stance,” he told Bernama.
Mohd Afzanizam added that the US dollar/ringgit pair may attempt to break the RM4.05 level next week.
On a Friday-to-Friday basis, the ringgit appreciated to 4.0690/0735 against the US dollar from 4.0860/0910 a week earlier.
The local currency traded mostly higher against a basket of major currencies during the week.
It rose against the Japanese yen to 2.5253/5281 from 2.5283/5316, and advanced vis-à-vis the euro to 4.6553/6606 from 4.6605/6662 previously.
However, it slid against the British pound to 5.4325/4385 from 5.4013/4079 last week.
The ringgit was mostly firmer against Asean currencies.
It strengthened against the Singapore dollar to 3.1521/1558 from 3.1581/1625, strengthened against the Indonesian rupiah to 226.5/226.8 from 227.9/228.3, and improved against the Philippine peso to 6.62/6.63 from 6.66/6.67 last Friday.
Meanwhile, it eased against the Thai baht to 12.2782/2966 from 12.2445/264 previously. — Bernama
