KUALA LUMPUR – The ringgit is expected to trade at current levels against the US dollar next week ahead of the release of Malaysia’s second quarter 2021 gross domestic product (Q2 2021 GDP) figures on August 13.
As such, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim foresees the ringgit to experience headwinds next week, trading in a range of RM4.22 to RM4.23 against the greenback.
“All eyes will be on the Q2 2021 GDP report as investors want to gauge Malaysia's economic growth trajectory, especially after the full-scale lockdown was imposed during the quarter,” he said.
Furthermore, he said with no signs of Covid-19 cases easing, the local note will continue to face pressure.
Malaysia recorded 20,889 new Covid-19 infections yesterday, the highest since the pandemic started last year.
For the week just ended, the local note was mostly higher throughout the week, coinciding with gains seen in the Brent crude oil price.
On a weekly basis, the ringgit appreciated versus the US dollar to 4.2180/2205 from 4.2190/2220 a week ago.
Meanwhile, the ringgit was traded mostly higher against other major currencies except against the Singapore dollar, where it depreciated to 3.1219/1240 from 3.1189/1216 a week earlier.
It rose against the British pound to 5.8685/8720 from 5.8935/8977, advanced against the euro to 4.9815/9844 from 5.0181/0216 in the preceding week and strengthened vis-a-vis the Japanese yen to 3.8415/8442 from 3.8502/8529 previously. – Bernama, August 7, 2021
