THE ringgit is likely to stay at the current level against the US dollar, at 4.66 to 4.68, as monetary policy action will continue to take centre stage with a US Federal Reserve (Fed) meeting next week.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the ringgit is likely to maintain its course, whereby it will remain in a weak trajectory as the Fed is expected to keep its restrictive monetary stance.

He said higher crude oil prices seem to suggest that inflation may take a while to recede towards the 2% target, which necessitates keeping the benchmark interest rate high.

The European Central Bank’s governing council will meet on Thursday with a consensus that there will be no change in the policy rate.

“The ringgit is in an oversold condition, and the tight monetary stance has already been priced in,” said Afzanizam.

“Therefore, it may need new information for it to weaken further. As such, until the Federal Open Market Committee reconvenes on September 19-20, the ringgit could range between 4.66 and 4.68 against the US dollar next week.”

On a Friday-to-Friday basis, the ringgit was lower against the greenback at 4.6745/6795 yesterday from 4.6445/6485 a week earlier.

The local unit was, however, traded higher against other major currencies.

It appreciated against the British pound to 5.8352/8414 from 5.8878/8929 the previous Friday, rose against the euro to 5.0031/0085 from 5.0388/0432 and was higher vis-a-vis the Japanese yen to 3.1741/1777 from 3.1939/1968.

Similarly, the ringgit traded mixed against its Asean peers.

The local unit improved against the Singapore dollar to 3.4277/4312 from 3.4386/4418 a week earlier and increased against the Thai baht at 13.1591/1787 from 13.2677/2852.

It weakened vis-a-vis the Philippine peso to 8.25/8.26 from 8.21/8.22 last week and inched down against the Indonesian rupiah to 304.9/305.4 from 304.6/305.1. – Bernama, September 9, 2023.