KUALA LUMPUR: A rebound on the equity market boosted demand for the ringgit this morning, helping it to start the week stronger against the US dollar.
Bank Muamalat Malaysia Bhd head of economics, market analysis and social finance Mohd Afzanizam Abdul Rashid said that from a technical standpoint, the ringgit is already in an oversold position against the US dollar, suggesting possible appreciation in the immediate term. “We believe BNM will keep the overnight policy rates unchanged as the central bank may need to observe the effects of last year’s hikes,” he said.Afzanizam said that for now, the ringgit would likely continue to move in a tight range of around RM4.47 to RM4.48 against the greenback as concerns over a hawkish US Federal Reserve sentiment would continue to dictate the market direction.The local unit depreciated against the euro to 4.7507/4.7560 from 4.7487/4.