Kuala lumpur: The ringgit is projected to remain range-bound against the US dollar next week, fluctuating between RM4.07 and RM4.09. This expectation arises as investors exhibit caution over the future trajectory of United States interest rates, an analyst has indicated.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, stated that investors are likely to focus their attention on the upcoming US Consumer Price Index (CPI) release, scheduled for August 12, 2026. The consensus forecast for the CPI stands at 3.4 percent. On the domestic front, he noted that investors would also keep a watchful eye on Malaysia's second-quarter (2Q) 2026 gross domestic product (GDP) data, which is due on August 14. "We believe 2Q 2026 GDP growth is likely to match the advance estimate of 5.8 percent," Mohd Afzanizam told Bernama.
Quintex Intel's global strategist, Stephen Innes, commented that the ringgit is anticipated to trade within a narrower range, specifically between RM4.0825 and RM4.0975 against the US dollar. He remarked that the latest US non-farm payrolls report might reinforce expectations that the labor market is cooling at a measured pace, thereby alleviating fears of a substantial economic slowdown. Innes added, "Even with a softer payroll print, the market still believes the US Federal Reserve remains more focused on inflation risks. That suggests the US dollar could weaken modestly next week, but a more sustained decline appears unlikely while oil prices remain firm."
On a Friday-to-Friday basis, the ringgit eased against the US dollar, recording 4.0885/0930 compared to 4.0835/0875 from the previous week. The local currency also traded lower against most major currencies throughout the week.
Specific declines were noted against the Japanese yen, where it weakened to 2.5813/5843 from 2.5520/5548. It also declined against the euro, moving to 4.7132/7184 from 4.6981/7027, and depreciated against the British pound, reaching 5.4949/5010 from 5.4923/4977 previously.
The ringgit experienced a downward trend against ASEAN currencies as well. It slid against the Singapore dollar to 3.1911/1949 from 3.1823/1856 and slipped against the Philippine peso to 6.71/6.72 from 6.66/6.67 a week earlier. Additionally, the ringgit edged lower against the Thai baht, decreasing to 12.3665/3843 from 12.2264/2435, and declined against the Indonesian rupiah, moving to 228.4/228.7 from 226.6/226.8 a week prior.