Ringgit Stabilization Predicted for End-August
Kenanga Investment Bank Bhd (Kenanga IB) forecasts that the ringgit will stabilize by end-August as the US dollar gives back some of its earlier gains. The investment bank noted that the local currency extended June's losses, depreciating a further 0.3 per cent in July to average 4.08 against the greenback.
The Malaysian ringgit traded largely within Kenanga IB's projected 4.07-4.10 versus the US dollar range. 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.
Kenanga IB expects Bank Negara Malaysia (BNM) to maintain the overnight policy rate at 2.75 per cent through 2026 as underlying inflation stays contained and growth remains resilient.