Ringgit likely to continue uptrend against US dollar next week
Published on: Saturday, March 09, 2024
By: Bernama
For the week just ended, the ringgit traded mostly higher against the US dollar after the US Dollar Index (DXY) retreated in anticipation of easier monetary policy in the US, coupled with renewed buying interest on the local currency. — Picture by Sayuti Zainudin
Kuala Lumpur: The ringgit is expected to continue its uptrend against the US dollar next week, supported by improving sentiment amid an encouraging domestic environment, said Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid.
He said the local note is likely to trend between 4.67 and 4.69 against the greenback next week following its significant rise in the previous week.
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“Sentiments on the ringgit are expected to improve, while the Bank Negara Malaysia’s (BNM) opinion on the undervaluation of the ringgit also helped to give some direction on the ringgit movement,” he told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes believed the central bank is expected to keep its current interest rates throughout 2024, which could be important for the ringgit.
Bank Negara Malaysia’s Monetary Policy Committee (MPC) announced its decision to maintain the Overnight Policy Rate (OPR) at 3.00 per cent during its meeting on Thursday.
“Assuming interest rate calls remain aligned, the expectation of a narrowing interest rate differential between the US and Malaysia should lead to the ringgit trading stronger next week.
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“The projection is for the ringgit to trade between 4.67 and 4.70 against the US dollar. However, there could be a move towards 4.65 if US inflation cools down as expected next week,” Innes added.
For the week just ended, the ringgit traded mostly higher against the US dollar after the US Dollar Index (DXY) retreated in anticipation of easier monetary policy in the US, coupled with renewed buying interest on the local currency.
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On a Friday-to-Friday basis, the ringgit rose to 4.6815/6855 against the greenback compared to 4.7440/7480 a week earlier.
The local note traded mixed against major currencies.
It fell vis-a-vis the Japanese yen to 3.1821/1850 from 3.1642/1681 a week earlier, almost flat against the British pound to 6.0050/0101 from 6.0042/0111, and gained against the euro to 5.1188/1231 compared to 5.1434/1493 previously.
The ringgit traded higher against all Asean currencies.
It appreciated to 13.2134/2321 against Thai Baht from 13.2140/2345 last Friday, rose versus the Singapore dollar to 3.5160/5192 from 3.5257/5301 a week ago, edged up against the Indonesian rupiah to 300.2/300.6 from 301.5/302.0, and strengthened against the Philippine peso to 8.42/8.43 from 8.43/8.44 last week.
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