THE ringgit is more likely to keep on the present stage towards the US greenback, at 4.66 to 4.68, as financial coverage motion will proceed to take centre stage with a US Federal Reserve (Fed) assembly subsequent week.
Financial institution Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid mentioned the ringgit is more likely to keep its course, whereby it is going to stay in a weak trajectory because the Fed is anticipated to maintain its restrictive financial stance.
Plus, greater crude oil costs appear to counsel that inflation would possibly take some time to recede in direction of the 2 per cent goal, which necessitates holding the benchmark rate of interest excessive.
The European Central Financial institution’s (ECB) governing council will meet on Thursday subsequent week with a consensus that there will probably be no change within the coverage price.
“Having mentioned that, the ringgit is in an oversold situation, and the tight financial stance has already been priced in.
“Due to this fact, it might want new data for it to weaken additional. As such, till the Federal Open Market Committee (FOMC) reconvenes on Sept 19-20, the ringgit might vary between RM4.66 to RM4.68 towards the US greenback subsequent week,” Mohd Afzanizam advised Bernama.
On a Friday-to-Friday foundation, the ringgit was decrease towards the US greenback at 4.6745/6795 from 4.6445/6485 every week earlier.
The native unit was, nonetheless, traded greater towards different main currencies.
It appreciated towards the British pound to five.8352/8414 from 5.8878/8929 the earlier Friday, rose towards the euro to five.0031/0085 from 5.0388/0432 and was greater vis-a-vis the Japanese yen to three.1741/1777 from 3.1939/1968 from beforehand.
Equally, the ringgit traded blended towards its Asean friends.
The native unit improved towards the Singapore greenback to three.4277/4312 from 3.4386/4418 every week earlier and elevated towards the Thai baht at 13.1591/1787 from 13.2677/2852 final Friday.
It weakened vis-a-vis the Philippine peso to eight.25/8.26 from 8.21/8.22 final week and inched down towards the Indonesian rupiah to 304.9/305.4 from 304.6/305.1. — BERNAMA