Ringgit likely to trade in narrow range versus US dollar next week
Published on: Saturday, May 18, 2024
By:
Bernama, Malay Mail
On a Friday-to-Friday basis, the ringgit appreciated to 4.6865/6890 versus the greenback from 4.7385/7410 a week earlier. — Picture by Miera Zulyana
Kuala Lumpur: The ringgit is expected to trade in a narrow range of 4.67 to 4.69 against the US dollar next week due to the absence of key economic data, said Kenanga Investment Bank Bhd.
In a note, it said the sentiment expressed in the publication of US Federal Open Market Committee minutes on May 22, 2024, is likely to be the primary driver of the ringgit’s trajectory, with a dovish stance potentially leading to a depreciation of the US dollar and benefiting the local currency.
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Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that there will be a line-up of US Federal Reserve (Fed) speakers next week who will share their thoughts on the state of the economy.
Among the speakers are Fed chairman Jerome Powell, Fed governor Christopher Waller, Fed vice-chairman Philip Jefferson and Fed vice-chair for supervision Michael Barr.
“We shall expect some volatility as the Fed members are likely to exert their assertiveness over inflation, which can lead to further uncertainty.
“On that note, we shall see that the ringgit will (likely) trade at around RM4.6800,” he told Bernama.
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On a Friday-to-Friday basis, the ringgit appreciated to 4.6865/6890 versus the greenback from 4.7385/7410 a week earlier.
The ringgit traded higher against a basket of major currencies.
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The local note rose against the British pound to 5.9303/9335 from 5.9364/9395 over the week, edged up versus the Japanese yen to 3.0071/0089 from 3.0428/0446, and went up vis-a-vis the euro to 5.0816/0843 from 5.1072/1098 previously.
The ringgit traded mostly higher against Asean currencies.
It strengthened against the Indonesian rupiah to 293.6/294.0 from 295.2/295.6 on Friday last week, inched up vis-a-vis the Singapore dollar to 3.4784/4806 from 3.5017/5038, and was higher versus the Philippine peso to 8.13/8.14 from 8.25/8.26 previously.
However, it was down against the Thai baht to 12.9390/9516 from 12.9009/9137 a week earlier.
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