KUALA LUMPUR, July 1 — The ringgit rebounded after two consecutive trading days of losses to open marginally higher against the US dollar this morning ahead of the fourth Bank Negara Malaysia Monetary Policy Committee meeting scheduled next week, an analyst said.
SPI Asset Management managing partner Stephen Innes said market investors are pricing in BNM’s expected overnight policy rate hike to above 4 per cent. “Hence, we think the BNM will not be as aggressive as market pricing, and that opens the door to a weaker ringgit except if the Federal Reserve should take its foot off the rate hike after September,” he said.
“I expect the ringgit to stay weak until the Federal Reserve Board indicates it needs to cut rates and there is a definitive change in China's zero Covid-19 policy.