Ringgit expected to remain well supported next week ahead of OPR decision
KUALA LUMPUR: The ringgit is expected to remain well supported next week ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting on Sept 3, with the central bank widely expected to keep the Overnight Policy Rate (OPR) at 2.75 per cent.
KUALA LUMPUR: The ringgit is anticipated to stay well supported throughout the upcoming week prior to Bank Negara Malaysia's Monetary Policy Committee meeting on September 3, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. He expects the Overnight Policy Rate (OPR) to remain at 2.75 per cent, as the economy is experiencing robust growth of six per cent in the second quarter.
Inflation, while rising, remains at a moderate level, currently at 1.9 per cent in June 2026 compared to 1.6 per cent in the first quarter. Dr Rashid believes the steady OPR will provide a positive boost to the ringgit's strength. The US interest rate outlook has been impacted by weaker labor market conditions and the US Treasury's intervention in the long-term bond market, leading to a significant decline in the probability of a US rate hike in September to around 30 per cent.
Dr Rashid anticipates the ringgit to trade within a narrow range, between RM4.03 and RM4.04, ahead of the US non-farm payrolls (NFP) and ISM data releases. The US NFP report is expected to significantly impact the US interest rate market and the US dollar. Kenanga Investment Bank Bhd advises that BNM should maintain the OPR at 2.75 per cent, leaving the ringgit's direction dependent on global interest rates and US dollar positioning.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
