KUALA LUMPUR (Bernama): The ringgit is expected to stay in rangebound trade between RM4.42 and RM4.43 against the US Dollar from Monday (Dec 9) on caution ahead of more data from the United States, an economist said.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the focus next week would be on the US Consumer Price Index (CPI) report on Wednesday.
“This (data will be) quite critical as the following week the US Federal Open Market Committee (FOMC) will meet to make a monetary policy decision, hence there would be a blackout period from Dec 7-19 where FOMC participants and staff are barred from giving public interviews.
“In that sense, it will leave the markets with (only) the data points to make their inferences of (what) decision the Fed would make,” he told Bernama.
Afzanizam said US data points this week have been supportive of a 25 basis points rate cut in the upcoming FOMC meeting on Dec 17-18.
“This has translated into further support to ringgit after the ringgit correction following the conclusion of the US presidential election on Nov 5,” he added.
On a Friday-to-Friday basis, the ringgit appreciated against the US dollar to 4.4170/4220 from 4.4425/4495 a week ago.
For the week, the local note traded higher against other major currencies.
It strengthened versus the euro to 4.6719/6771 against 4.6899/6973, appreciated against the British pound to 5.6352/6416 versus 5.6384/6473 and rose against the Japanese yen to 2.9329/9364 from 2.9589/9638 at last week’s close.
It traded mixed against Asean currencies.
It went up against the Singapore dollar to 3.2963/3002 from 3.3146/3200 but eased against the Thai baht, closing at 12.9576/9784 compared to 12.9459/9738 last Friday.
The local note climbed vis-a-vis the Indonesian rupiah to 278.7/279.2 from 280.2/280.8 and was lower against the Philippine peso at 7.65/7.66 from 7.58/7.59. - Bernama
