Kuala lumpur: The ringgit is expected to trade within the RM4.06-RM4.08 range against the US dollar next week amid cautious market sentiment and continued geopolitical uncertainties. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that market sentiment is likely to remain cautious amid a relatively quiet US economic calendar.

According to BERNAMA News Agency, Dr. Mohd Afzanizam highlighted key international events that could influence the currency market. The People's Bank of China is set to announce its latest loan prime rates on July 20, and the European Central Bank will reveal its monetary policy decision on July 23. These announcements are expected to be closely watched by market participants.

Dr. Mohd Afzanizam also remarked on the influence of geopolitical developments in West Asia and their potential effects on crude oil prices. He mentioned that both West Texas Intermediate and Brent crude oil prices have remained elevated, indicating possible persistent inflationary pressures throughout July.

On a comparative basis from Friday to Friday, the ringgit weakened to 4.0930/0990 against the US dollar from 4.0695/0745 the previous week. The local currency also showed a decline against a basket of major currencies during the week. It depreciated against the Japanese yen, euro, and British pound, reflecting a broader trend of weakening.

The ringgit also showed a downward trend against ASEAN currencies. It fell against the Singapore dollar, Indonesian rupiah, and Philippine peso, although it managed to strengthen against the Thai baht. The fluctuations in these regional currency exchanges highlight the varied impacts of global economic and geopolitical developments on the ringgit's performance.