Ringgit Stuck in Tight Range Ahead of Key Data Releases

The Malaysian ringgit is expected to trade within a narrow band against the US dollar this week as investors await critical data from the United States and Malaysia.

According to Bank Muamalat Malaysia Bhd's chief economist Mohd Afzanizam Abdul Rashid, the currency will likely be influenced by caution over the trajectory of US interest rates ahead of the US consumer price index (CPI) release on August 12. The consensus forecast for the CPI is 3.4%.

On the home front, Malaysia's second-quarter gross domestic product (GDP) figures are set to be released on August 14, with an expected growth rate of 5.8%, matching the advance estimate.

Quintex Intel global strategist Stephen Innes projects a slightly tighter range for the ringgit against the dollar, between RM4.0825 and RM4.0975. He notes that while the US Federal Reserve remains focused on inflation risks, the latest non-farm payrolls report suggests the American labor market is cooling at a measured pace.