KUALA LUMPUR (Bernama): The ringgit is expected to trade in a range between RM3.93 and RM3.98 this week as investors will keep a close watch on the trajectory of crude oil prices.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the traders and investors would continue to monitor the war in Iran next week.
Sharing the same view, Kenanga Investment Bank Bhd expects investors to remain defensive and reduce exposure to high beta emerging market assets.
"Despite Malaysia’s LNG windfall providing partial insulation, the ringgit should stay capped and trade sideways with a mild weakening bias at RM3.93-RM3.95 against the US dollar.
"Our baseline assumes no swift de-escalation and continued vulnerability of critical West Asia supply routes.
"Elevated energy prices should keep global inflation risks and bond yields biased higher, tightening financial conditions and reducing the scope for near-term Fed easing,” Kenanga IB said in a research note on Friday.
On a week-on-week basis, the ringgit ended the week higher against the US dollar to close at 3.9365/9410 compared with 3.9425/9535 on the previous Friday.
The local note traded higher against a basket of major currencies this week.
It edged up versus the Japanese yen to 2.4683/4715 from 2.4973/5044 a week earlier, strengthened vis-a-vis the British pound to 5.2214/2273 from 5.2530/2676 and rose against the euro to 4.5093/5144 from 4.5634/5762 previously.
Meanwhile, the ringgit also trended stronger against its ASEAN peers.
The local currency gained versus the Singapore dollar to 3.0730/0767 from 3.0779/0867 a week earlier, strengthened versus the Thai baht to 12.1862/2062 from 12.3392/3810, increased vis-a-vis the Indonesian rupiah to 232.1/232.5 from 232.9/233.6 and gained against the Philippine peso to 6.59/6.60 from 6.68/6.70 previously. -- BERNAMA
