KUALA LUMPUR, Oct 31 — The ringgit is expected to trade within a narrow range against the US dollar next week as investors turn their attention to Bank Negara Malaysia’s (BNM) Overnight Policy Rate (OPR) decision on November 5.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a potential OPR hike next week could provide support for the ringgit, as BNM may consider normalising the policy rate in view of the country’s stronger-than-expected economic growth trajectory.
“Perhaps, the dollar-ringgit would range between RM4.05 to RM4.07 next week,” it said.
Meanwhile, Kenanga Investment Bank Bhd said any escalation in the West Asia crisis could push oil prices and the US Treasury (UST) term premium higher, reversing the 10-year yield’s decline below 5.00 per cent and reviving demand for the US dollar.
