Ringgit likely in range-bound trading this week; to stay within the RM4.63 and RM4.65 range

KUALA LUMPUR (Bernama): The ringgit is expected to trade range-bound with a downward bias against the US dollar this week as the greenback may gain support surrounding global economic uncertainties, an analyst said.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the local currency is expected to trade between 4.63 and 4.65 in the upcoming week.

He said investors’ focus will be shifted onto Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) decision scheduled on Sept 7 to further digest the local currency’s prospect.

“Our judgement is that the BNM might want to keep the OPR steady at 3.00 per cent next week,” he told Bernama.

Meanwhile, SPI Asset Management managing director Stephen Innes noted that for the ringgit to regain its lost ground, China’s economic data must improve.

“The ringgit and Asian currencies are currently experiencing a struggle between China’s property market crash and policymakers’ attempts to avoid a credit and confidence crisis,” he added.

On a Friday-to-Friday basis, the ringgit was lower against the US dollar at 4.6445/6485 from 4.6385/6430 a week earlier.

The local unit was also traded lower against other major currencies.

It depreciated against the British pound to 5.8878/8929 from 5.8385/8441 the previous Friday, fell against the euro to 5.0388/0432 from 5.0054/0103 and eased vis-a-vis the Japanese yen to 3.1939/1968 from 3.1757/1790 previously.

Similarly, the ringgit was traded lower against its Asean peers.

The local unit declined against the Singapore dollar to 3.4386/4418 from 3.4202/4238 a week earlier and inched down against the Indonesian rupiah to 304.6/305.1 from 303.2/303.7.

It weakened vis-a-vis the Philippine peso to 8.21/8.22 from 8.20/8.21 last week and was lower against the Thai baht at 13.2677/2852 from 13.2121/2309 last Friday. – Bernama