Ringgit Expected to Trade Between RM4.06 and RM4.09 This Week
Bank Muamalat forecasts a stable ringgit range as traders await Federal Reserve officials' speeches on potential rate hikes.
Key points
- Bank Muamalat forecasts the ringgit-dollar rate will stay between RM4.06 and RM4.09 this week.
- The currency weakened slightly against the dollar but strengthened against the pound, yen, and euro.
- Market attention is focused on Fed officials' speeches regarding a potential 25-basis point rate hike.
The ringgit is projected to trade between RM4.06 and RM4.09 against the US dollar this week. This forecast comes from Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid. He noted that market participants are closely monitoring upcoming speeches by US Federal Reserve officials.
The central bank currently anticipates one additional 25-basis point rate hike later this year. Traders will assess the Fed's level of conviction regarding future monetary tightening measures. This uncertainty is keeping currency movements cautious and contained within a specific band.
Recent Dollar Weakness Context
The local currency weakened against the dollar on a Friday-to-Friday basis. The exchange rate shifted from 4.0685/0725 to 4.0795/0840 over the previous week. However, the ringgit showed strength against several other major global currencies during the same period.
The currency appreciated significantly against the British pound, moving to 5.4543/4603 from 5.4961/5015. It also gained ground against the Japanese yen, trading at 2.5829/5860 compared to 2.6400/6428 earlier. These movements indicate a mixed performance across different currency pairs.
Regional Currency Performance Overview
The ringgit rose against the euro, reaching 4.6849/6901 from 4.7178/7225 in the prior week. This strength extended to several Asian neighbors as well. The local note edged up against the Singapore dollar to 3.1933/1971 from 3.2091/2125.
Strength was also recorded against the Thai baht, which moved to 12.2383/2562 from 12.3072/3241. The Star reported that these gains reflect broader regional dynamics. Traders are now focusing on how Fed commentary will influence these relative positions.
