Additional Stories

Ringgit may strengthen against US$: FXTM

Written by Han Tan, Market Analyst at FXTM

The Malaysian Ringgit could climb further against the US Dollar in the week ahead, should investors raise their expectations for a larger Fed rate cut in July.

The US Q2 GDP and July composite PMI figures due in the week ahead are unlikely to dissuade the US central bank from cutting interest rates by at least 25-basis points this month.

<< The dovish outlook on US monetary policy is lending itself to a softer Dollar environment, which could lead to the more near-term upside for the Ringgit. >>

On the domestic front, Malaysia’s June consumer price index is expected to tick higher, although overall headline inflation for the year should remain manageable.

With onshore risks contained, Bank Negara will continue monitoring the external downside risks in ensuring its accommodative policy stance.

For the week ahead, the 4.09 mark is being eyed as the near-term support level for USDMYR, while the resistance line can be seen at its 100-day moving average around the 4.12 mark.

Leave a Reply

Back To Top