KUALA LUMPUR (Bernama): The ringgit is expected to trade slightly higher against the US dollar this week and move between the RM4.62 and RM4.63 level amid subdued demand ahead of the Christmas and New Year breaks.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said next week is anticipated to be a quiet week as traders and fund managers will be away for their holidays.
"Economic data will also likely not have a material effect on the currency markets.
"On that note, we foresee the ringgit to linger at around 4.6200 to 4.6300 as the currency pair could be nearing its immediate support level of 4.5778,” he told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the outcome of the US Core Personal Consumption Expenditures (PCE) Price Index would drive even more intense US rate cut sentiment and push the greenback lower.
He said, however, a higher inflation reading could drive the dollar higher into year-end and possibly send the ringgit back to the 4.70 level.
"Nevertheless, I fully expect the ringgit to trade strong next week at 4.6425 to 4.6725,” he said.
For the week just ended, the local note traded higher amid positive sentiment in anticipation of global interest rate cuts next year.
On a Friday-to-Friday basis, the ringgit was firmer against the US dollar at 4.6265/6305 from 4.6675/6720 a week earlier.
The local unit also traded higher against other major currencies.
It rose vis-a-vis the Japanese yen to 3.2547/2579 from 3.2930/2966 a week earlier, improved against the British pound to 5.8720/8770 from 5.9646/9703, and appreciated versus the euro to 5.0915/0959 from 5.1165/1214 at the previous Friday’s close.
The ringgit was also traded firmer against a few Asean currencies.
It went up versus the Singapore dollar to 3.4933/4968 from 3.5136/5173 a week ago and strengthened against the Thai baht to 13.3509/3706 from 13.3970/41769 previously.
The ringgit was firmer against the Indonesian rupiah at 298.7/299.1 from 301.2/301.6 on Friday last week and gained against the Philippine peso to 8.35/8.36 from last week’s closing rate of 8.38/8.40 previously. - Bernama
