KUALA LUMPUR (Bernama): The ringgit is expected to trade range-bound against the greenback this week, as investors adopt a cautious approach ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting on July 9.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local note is likely to stay steady, with market participants focusing on the central bank’s upcoming decision.
"The outcome of the meeting could shape the ringgit’s near-term trajectory. We are calling for a 25 basis-point cut in the overnight policy rate (OPR), as the need for monetary support has grown given the increasingly challenging macroeconomic outlook for the second half of 2025,” he told Bernama.
Mohd Afzanizam said subdued global demand, ongoing geopolitical tensions and signs of moderating domestic activity may lead the central bank to adopt a more accommodative stance.
"In the absence of major external shocks, the ringgit is expected to trade within a narrow band of RM4.22 to RM4.23 against the greenback throughout the week,” he added.
The ringgit ended the week higher against the greenback, closing at 4.2180/2260 from 4.2300/2355 last Friday.
The local note traded mostly higher against a basket of major currencies.
The ringgit appreciated vis-a-vis the Japanese yen to 2.9225/9282 from 2.9359/9399, and increased against the British pound to 5.7601/7710 from 5.8141/8217.
However, it fell versus the euro to 4.9675/9770 from 4.9597/9661 at the end of last week.
The ringgit also traded mostly higher against Asean currencies.
The local note improved against the Singapore dollar to 3.3114/3182 from 3.3192/3240, enhanced versus the Indonesian rupiah to 260.6/261.2 from 260.9/261.4, while it weakened versus the Thai baht to 13.0302/0609 from 13.0254/0488, previously.
It was unchanged against the Philippine peso at 7.47/7.49. - Bernama
