KUALA LUMPUR (Bernama): The ringgit is expected to remain steady and trade within the 4.10-4.12 range against the US dollar this week, supported by market expectations of an interest rate cut by the US Federal Reserve (Fed) at its upcoming Federal Open Market Committee (FOMC) meeting.
Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid said most traders and investors anticipate the Fed will deliver a 25-basis-point cut at the meeting scheduled for Dec 9-10.
"The focus next week will be on the FOMC meeting and, more importantly, the policy guidance, especially their latest quarterly projections on macroeconomic variables, particularly the federal funds rate and inflation forecast,” he told Bernama.
Earlier this week, the local note was flat on Monday before strengthening from Tuesday through Friday. It also touched the 4.11 level-its strongest level in four years and five months-on Thursday.
On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.1105/1140 compared with 4.1300/1350 last week.
The local note traded lower against a basket of major currencies.
It weakened against the yen to 2.6536/6561 from 2.6420/6456, slid versus the euro to 4.7912/7953 from 4.7768/7825, and slipped vis-à-vis the British pound to 5.4859/4905 from 5.4528/4594 at last week’s close.
The ringgit trended mostly higher against its ASEAN peers.
It appreciated versus the Indonesian rupiah to 246.8/247.2 from 247.6/248.0 last week, increased against the Singapore dollar to 3.1741/1773 from 3.1813/1857 previously, and was higher against the Philippine peso at 6.97/6.98 from 7.04/7.06.
However, the local currency decreased versus the Thai baht to 12.9054/9221 from 12.8245/8472 a week ago. -- Bernama
