What trading range does Bank Muamalat expect for the ringgit?

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Bank Muamalat Forecasts Ringgit to Trade Between RM4.24 and RM4.25

Bank Muamalat Malaysia Bhd anticipates the ringgit will trade within the RM4.24 to RM4.25 range against the US dollar for the day. This projection is underpinned by expectations that the upcoming tabling of the 13th Malaysia Plan (13MP) will stimulate development spending and bolster economic growth, thereby supporting domestic demand, particularly in construction-related sectors.
Anticipation of 13MP's Economic Impact

The imminent announcement of the 13th Malaysia Plan (13MP) is a key factor influencing Bank Muamalat's forecast. The plan is widely expected to lead to an increase in government development expenditure. This increased spending is projected to act as a catalyst for stronger economic expansion by stimulating domestic demand.
Influence of Construction Sector Demand

Specifically, the 13MP is anticipated to provide a significant boost to construction-related sectors. This focus on infrastructure and development projects is seen as a direct driver of domestic economic activity, contributing to the overall positive outlook for the ringgit.
US Dollar Index and Federal Reserve Factors

External economic factors also play a role in the ringgit's expected trading range. The US Dollar Index (DXY) has seen an upward trend, reaching 99.82 points. This movement is occurring in the context of the US Federal Reserve maintaining its Fed Funds Rate at 4.25–4.50 per cent, alongside a revised, more subdued economic outlook for the United States. The second-quarter US GDP print of 3.0 per cent, significantly influenced by a sharp reduction in imports, also contributes to the current economic narrative.

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What trading range does Bank Muamalat expect for the ringgit?

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