Ringgit to trade range-bound vs US dollar this week

KUALA LUMPUR: The ringgit is expected to remain range-bound against the US dollar this week, trading between RM4.07 and RM4.09 as investors stay cautious over the direction of the United States interest rates, an analyst says.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors would turn their attention to the US consumer price index or CPI due to release on Aug 12, 2026, with the consensus forecast at 3.4%.

On the home front, he said investors would also monitor Malaysia’s second-quarter 2026 (2Q26) gross domestic product (GDP) data due on Aug 14.

“We believe 2Q26 GDP growth is likely to match the advance estimate of 5.8%,” Mohd Afzanizam told Bernama.

Meanwhile, Quintex Intel global strategist Stephen Innes said the ringgit is expected to trade between RM4.0825 and RM4.0975 against the US dollar.

He said the latest US non-farm payrolls report could reinforce expectations that the labour market is cooling at a measured pace, reducing fears of a significant economic slowdown.

“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 this week, but a more sustained decline appears unlikely while oil prices remain firm,” said Innes.

On a Friday-to-Friday basis, the ringgit eased against the US dollar to 4.0885/0930 from 4.0835/0875 a week earlier.

The local currency traded lower against most major currencies during the week.

It weakened against the Japanese yen to 2.5813/5843 from 2.5520/5548, declined vis-a-vis the euro to 4.7132/7184 from 4.6981/7027, and depreciated against the British pound to 5.4949/5010 from 5.4923/4977 previously.

The ringgit also traded lower against Asean currencies.

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.

The ringgit edged lower against the Thai baht to 12.3665/3843 from 12.2264/2435 and decreased against the Indonesian rupiah to 228.4/228.7 from 226.6/226.8 a week previously.