Ringgit Seen Stabilizing by End-August as US Dollar Recovers

Kenanga Investment Bank expects the Malaysian ringgit to stabilize by end-August as the US dollar gives back some of its earlier gains following the US Federal Reserve's decision to keep interest rates unchanged at its July meeting.

The ringgit depreciated 0.3% in July, averaging 4.08 against the greenback, and traded within Kenanga IB's projected range of 4.07-4.10.

Elevated West Asia tensions and higher energy prices supported the US dollar, while softer US inflation and labour market data tempered expectations of further Fed tightening.