Bursa Malaysia Seen Range-Bound, Ringgit May Weaken Amid Global Uncertainties

KUALA LUMPUR: Bursa Malaysia is expected to trade in a range-bound manner this week as investors closely monitor developments surrounding US-Iran nuclear negotiations and the durability of a recently announced peace agreement.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said geopolitical risks have eased somewhat, but uncertainties remain over the implementation of the agreement and the pace of normalisation in the Strait of Hormuz.

Bursa Malaysia

Meanwhile, the ringgit is expected to trade on a softer note against the US dollar due to persistent expectations that the US Federal Reserve could raise interest rates later this year.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of a 25-basis-point increase in the federal funds rate are likely to continue supporting the greenback while exerting pressure on regional currencies, including the ringgit.

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