What specific factors are testing the RM4.05 resistance level for the ringgit?

Question

Accepted Answer

The RM4.05 resistance level is being tested mainly by upcoming policy signals from the US and Malaysia, especially the July 9 FOMC minutes and BNM MPC meeting.

The ringgit is expected to trade between RM4.05 and RM4.07 against the US dollar next week, and the US dollar/ringgit pair may try to break above RM4.05. Market focus is set on the United States Federal Open Market Committee (FOMC) minutes and Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting, both scheduled for Thursday, July 9. Traders, investors and economists are watching the FOMC minutes closely for clues on the direction of US interest rates.
July 9 timing concentrates attention on US rate signals via FOMC minutes
The key immediate catalyst is the release of the FOMC minutes on Thursday, July 9. Market participants are expected to scrutinise the minutes for clues about the direction of US interest rates. This is the specific factor linked to attempts to push the US dollar/ringgit pair beyond the RM4.05 level.
BNM’s MPC outcome is expected to keep Malaysia’s OPR at 2.75%
A second policy-related factor is BNM’s MPC meeting on the same day, July 9. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said BNM is expected to keep the overnight policy rate (OPR) steady at 2.75 per cent. With that call pointing to no change in the prevailing monetary stance, attention shifts toward how US rates may move after the FOMC minutes.
The ringgit’s recent week-to-week moves show it is not already breaking the band
On a Friday-to-Friday basis, the ringgit appreciated to 4.0690/0735 against the US dollar from 4.0860/0910 the week before. That recent improvement kept the pair within the RM4.05 to RM4.07 trading expectation for the coming week. Against that backdrop, the attempt to break RM4.05 is framed as a next-week testing move rather than a continuation of an already-established break.
Other currency movements during the week provide context but not specific RM4.05 triggers
During the week, the ringgit rose against the Japanese yen to 2.5253/5281 from 2.5283/5316 and advanced versus the euro to 4.6553/6606 from 4.6605/6662. It slid against the British pound to 5.4325/4385 from 5.4013/4079, while it was mostly firmer against several ASEAN currencies such as the Singapore dollar and Indonesian rupiah. These cross-currency changes describe broader direction, but the specific factors tied to testing RM4.05 in the provided information remain the July 9 FOMC minutes and the July 9 BNM MPC stance.

Reading history

Hide →

This history is cleared when the page is closed.

What specific factors are testing the RM4.05 resistance level for the ringgit?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

2

0

0

Share with friends