Ringgit Range-Bound as Investors Eye US Interest Rates and Inflation

The Malaysian ringgit is expected to remain range-bound against the US dollar next week, trading between RM4.07 and RM4.09 as investors stay cautious over the direction of US interest rates.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors will focus on the US Consumer Price Index (CPI) due to be released on August 12, with a consensus forecast at 3.4 percent.

Afzanizam also noted that investors will monitor Malaysia's second-quarter GDP data due out on August 14, with a predicted growth rate of 5.8 percent matching the advance estimate.

Meanwhile, Quintex Intel global strategist Stephen Innes said the ringgit could weaken modestly against the dollar next week if the US labour market is shown to be cooling at a measured pace, reducing fears of a significant economic slowdown.