Ringgit Expected To Trade At RM4.06-RM4.08 Next Week

By Abdul Hamid A Rahman

KUALA LUMPUR, July 18 (Bernama) -- The ringgit is expected to trade within the RM4.06-RM4.08 range against the US dollar next week amid cautious market sentiment and continued geopolitical uncertainties.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment is likely to remain cautious amid a relatively quiet US economic calendar.

“However, the People’s Bank of China is scheduled to announce its latest loan prime rates on July 20, while the European Central Bank will announce its monetary policy decision on July 23,” he told Bernama.

Mohd Afzanizam said market participants would also closely monitor geopolitical developments in West Asia and their impact on crude oil prices.

“Thus far, West Texas Intermediate and Brent crude oil prices have remained elevated, signalling that inflationary pressures could be persistent in July,” he said.

On a Friday-to-Friday basis, the ringgit weakened to 4.0930/0990 against the US dollar from 4.0695/0745 a week earlier.

The local currency traded lower against a basket of major currencies during the week.

It depreciated against the Japanese yen to 2.5208/5246 from 2.5148/5181, weakened vis-à-vis the euro to 4.6824/6893 from 4.6502/6559, and declined against the British pound to 5.5018/5099 from 5.4572/4639 previously.

The ringgit was mostly lower against ASEAN currencies.

It fell against the Singapore dollar to 3.1709/1758 from 3.1520/1561, weakened against the Indonesian rupiah to 228.4/228.8 from 225.2/225.6, and eased against the Philippine peso to 6.64/6.66 from 6.61/6.62 last Friday.

However, the local currency strengthened against the Thai baht to 12.1743/1965 from 12.2101/2302 previously.

-- BERNAMA