Ringgit likely to trend lower versus the US dollar; expected to stay around 4.71 range

KUALA LUMPUR (Bernama): The ringgit is likely to trade lower against the US dollar from Monday (June 24), maintaining a range near 4.71.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that next week, the market players will be focusing on the final first-quarter 2024 (1Q 2024) gross domestic product (GDP) figures for the United States (US).

"The first 1Q 2024 GDP estimate was 1.6 per cent in April, and the second estimate came in lower at 1.3 per cent in May.

"Should the data come in lower, it should reinvigorate the interest rate cut by the US Federal Reserve (Fed) in September,” he told Bernama.

On top of that, he added that there are a series of Fed speakers in the pipeline next week.

"We shall continue to hear similar messages where they want to keep the rate steady until they are convinced the inflation rate will go even lower,” he said.

On a Friday-to-Friday basis, the ringgit appreciated to 4.7110/7145 against the US dollar from 4.7190/7225 a week ago.

The ringgit was traded higher against a basket of other major currencies.

The local note rose against the British pound to 5.9594/9638 from 5.9955/9999 on the previous Friday, strengthened versus the euro to 5.0394/0431 from 5.0418/0455 a week earlier and gained vis-a-vis the Japanese yen to 2.9648/9671 from 3.0046/0072.

The ringgit was traded mostly higher against Asean currencies.

It went up against the Philippine peso to 8.00/8.02 compared with 8.04/8.05 a week earlier, improved versus the Indonesian rupiah to 286.3/286.7 from 287.5/287.8 and edged up vis-a-vis the Singapore dollar to 3.4785/4814 from 3.4857/4886 previously.

However, it was lower versus the Thai baht at 12.8495/8639 from 12.8328/8475 on Friday last week. - Bernama

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