KUALA LUMPUR (Bernama): The ringgit is expected to trade in a narrow range of 4.73 to 4.74 against the US dollar this week, with technical analysis suggesting the US$/MYR to be in the neutral zone, said Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid.
He said the recent policy rate cut by the Swiss National Bank by 25 basis points to 1.50 per cent has strengthened the greenback further, as the US Federal Reserve (Fed) is not about to cut the rate in the immediate term.
"In a grand scheme of things, the US dollar really stands out. The recent rate hike by the Bank of Japan also failed to lift the Japanese yen as the prospects for higher rates in Japan is still uncertain,” he told Bernama.
On that note, Mohd Afzanizam said the US dollar is in the sweet spot.
"The prevailing Fed Fund Rate, which is currently at 5.50 per cent, does give the greenback an edge in respect to the interest rate differential,” he added.
On a Friday-to-Friday basis, the ringgit weakened to 4.7340/7390 against the greenback compared with 4.7050/7095 a week earlier.
The local note, however, traded higher against most major currencies.
It improved vis-a-vis the Japanese yen to 3.1223/1258 from 3.1637/1669 a week earlier, higher against the British pound to 5.9582/9645 from 6.0003/0060 and rose against the euro at 5.1203/1257 from 5.1275/1324 previously.
The ringgit also traded higher against Asean currencies.
It appreciated to 13.0116/0318 against the Thai baht from 13.1480/1661 last Friday and gained versus the Singapore dollar to 3.5106/5145 from 3.5183/5219 a week ago.
The ringgit rose against the Indonesian rupiah to 299.8/300.4 from 301.5/302.0 last Friday and strengthened against the Philippine peso to 8.41/8.42 from 8.47/8.48 last week. - Bernama
