KUALA LUMPUR (Bernama): The ringgit is expected to extend its gains against the US dollar this week, potentially trading between 4.41 and 4.42, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
He said attention will be on the movement of the US Dollar Index (DXY), which slipped to 99.758 points on Thursday.
"If the DXY remains subdued, there is a possibility the ringgit could appreciate further,” he told Bernama.
Looking ahead, Mohd Afzanizam said the ongoing United States (US)-China trade war will remain a key factor influencing market sentiment.
He noted that uncertainties over potential announcements from the US administration are leaving markets cautious, as investors struggle to assess whether the developments will have a positive or negative impact on the global economy.
Meanwhile, SPI Asset Management managing director Stephen Innes expects the foreign exchange (forex) markets to stabilise next week, noting that the impact of the trade war is waning as it shifts from policy-driven concerns to political posturing.
The local currency ended the week at 4.4200/4265 against the greenback, up from 4.4335/4400 the previous week. Year to date, the ringgit has strengthened by 1.09 per cent.
It slid against the Japanese yen to 3.0952/1000 from 3.0294/0340 last week, decreased vis-a-vis the euro to 5.0207/0281 from 4.8706/8778, and fell against the British pound to 5.7849/7934 from 5.7591/7676.
The local note was traded mixed against ASEAN currencies.
It appreciated against the Philippine peso to 7.75/7.77 from 7.80/7.782 and was better vis-a-vis the Indonesian rupiah to 263.1/263.6 from 266.2/266.7 last week.
However, it slid versus the Singapore dollar to 3.3495/3549 from 3.3153/3204 and declined against the Thai baht to 13.1599/1902 from 12.9589/9847. - Bernama
