Business

Ringgit likely to trade range-bound ahead of BNM’S MPC meeting next week

Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting on July 9 could shape the ringgit’s near-term trajectory under expectations of a 25 basis-point OPR cut

Updated 1 year ago · Published on 05 Jul 2025 10:19AM

Ringgit likely to trade range-bound ahead of BNM’S MPC meeting next week
The local note is likely to stay steady, with market participants focusing on the central bank’s upcoming decision - July 5, 2025

THE ringgit is expected to trade range-bound against the greenback next week, as investors adopt a cautious approach ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting on July 9.

Bernama reported Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying the local note is likely to stay steady, with market participants focusing on the central bank’s upcoming decision.

“The outcome of the meeting could shape the ringgit’s near-term trajectory. We are calling for a 25 basis-point cut in the overnight policy rate (OPR), as the need for monetary support has grown given the increasingly challenging macroeconomic outlook for the second half of 2025,” he told Bernama.

Mohd Afzanizam said subdued global demand, ongoing geopolitical tensions and signs of moderating domestic activity may lead the central bank to adopt a more accommodative stance.

“In the absence of major external shocks, the ringgit is expected to trade within a narrow band of RM4.22 to RM4.23 against the greenback throughout the week,” he added.

The ringgit ended the week higher against the greenback, closing at 4.2180/2260 from 4.2300/2355 last Friday.

The local note traded mostly higher against a basket of major currencies.

The ringgit appreciated vis-a-vis the Japanese yen to 2.9225/9282 from 2.9359/9399, and increased against the British pound to 5.7601/7710 from 5.8141/8217.

However, it fell versus the euro to 4.9675/9770 from 4.9597/9661 at the end of last week.

The ringgit also traded mostly higher against ASEAN currencies.

The local note improved against the Singapore dollar to 3.3114/3182 from 3.3192/3240, enhanced versus the Indonesian rupiah to 260.6/261.2 from 260.9/261.4, while it weakened versus the Thai baht to 13.0302/0609 from 13.0254/0488, previously.

It was unchanged against the Philippine peso at 7.47/7.49. - July 5, 2025

Spotlight

Malaysia

Elderly man admits to hitting neighbour with iron rod

Malaysia

Body found at KLIA2 in tyre storage compartment of aircraft from Japan

Malaysia

Factory operator faces rape, unnatural sex charges involving polytechnic student

Malaysia

Ismail Sabri granted RM300k bail after pleading not guilty to asset declaration charge

By Alfian Z.M. Tahir

Malaysia

Sunway Lagoon ride halted as safety probe seeks to protect public - DOSH

Malaysia

Malaysia ready to deploy military expertise for Nepal flood relief, says Defence Minister

Malaysia

Violence in Thailand: Visitors drop by almost 50 per cent

By Ian McIntyre

You may be interested

Business

Malaysia’s international reserves stand at US$132.07b in July

Business

Robo.ai swings to positive equity after US$46.7m first-half profit

By Alfian Z.M. Tahir

Business

Questions over traceability of nearly 77,000 tonnes of K8 cargo at Tanjung Langsat

Business

Petronas revenue jumps 15% to RM152.4b as energy investments lift first-half earnings

Business

Robo.ai Inc announces appointment of new independent director

By Alfian Z.M. Tahir

Business

Oil falls for fourth day as Hormuz supply fears ease

Business

K8 Cargo: Company still in limbo, claims CEO

Business

ASM 2 Wawasan declares seven-year high payout of 5 sen a unit