By Siti Noor Afera Abu
KUALA LUMPUR, Sept 9 (NNN-Bernama) — The Malaysian ringgit is likely to stay at the current level against the US dollar, at 4.66 to 4.68, as monetary policy action will continue to take centre stage with a US Federal Reserve (Fed) meeting next week.
Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the ringgit is likely to maintain its course, whereby it will remain in a weak trajectory as the Fed is expected to keep its restrictive monetary stance.
Plus, higher crude oil prices seem to suggest that inflation might take a while to recede towards the two per cent target, which necessitates keeping the benchmark interest rate high.
The European Central Bank’s (ECB) governing council will meet on Thursday next week with a consensus that there will be no change in the policy rate.
“Having said that, the ringgit is in an oversold condition, and the tight monetary stance has already been priced in.
“Therefore, it may need new information for it to weaken further. As such, until the Federal Open Market Committee (FOMC) reconvenes on Sept 19-20, the ringgit could range between RM4.66 to RM4.68 against the US dollar next week,” Mohd Afzanizam told Bernama.
On a Friday-to-Friday basis, the ringgit was lower against the US dollar at 4.6745/6795 from 4.6445/6485 a week earlier.
The local unit was, however, traded higher against other major currencies.
It appreciated against the British pound to 5.8352/8414 from 5.8878/8929 the previous Friday, rose against the euro to 5.0031/0085 from 5.0388/0432 and was higher vis-a-vis the Japanese yen to 3.1741/1777 from 3.1939/1968 from previously.
Similarly, the ringgit traded mixed against its ASEAN peers.
The local unit improved against the Singapore dollar to 3.4277/4312 from 3.4386/4418 a week earlier and increased against the Thai baht at 13.1591/1787 from 13.2677/2852 last Friday.
It weakened vis-a-vis the Philippine peso to 8.25/8.26 from 8.21/8.22 last week and inched down against the Indonesian rupiah to 304.9/305.4 from 304.6/305.1.
— NNN-BERNAMA