KUALA LUMPUR (Bernama): The ringgit is expected to trade on a softer note against the US dollar this week amid persistent expectations of a possible US Federal Reserve (Fed) rate hike later this year.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of a possible 25-basis-point increase in the federal fund rate later this year are likely to continue supporting the greenback and weigh on regional currencies, including the ringgit.
"Next week, we foresee similar dynamics will continue to hold," he told Bernama.
Mohd Afzanizam said investors will closely monitor the release of the United States Personal Consumption Expenditures (PCE) Price Index on June 26, which is the Fed's preferred measure of inflation.
"The inflation gauge is expected to remain elevated. As such, expect the ringgit to stay soft in the near term,” he said.
On a Friday-to-Friday basis, the ringgit eased to 4.1340/1395 against the US dollar from 4.0555/0600 a week earlier.
The local currency traded lower against a basket of major currencies during the week.
It depreciated against the British pound to 5.4709/4782 from 5.4429/4489, eased versus the Japanese yen to 2.5636/5671 from 2.5334/5364 and weakened against the euro to 4.7376/7439 from 4.6979/7031 previously.
It also traded lower against ASEAN currencies.
It slid against the Indonesian rupiah to 232.2/232.5 from 227.0/227.4, eased vis-a-vis the Singapore dollar to 3.2019/2064 from 3.1602/1640, slipped against the Thai baht to 12.5856/6074 from 12.4105/4288, and declined against the Philippine peso to 6.80/6.81 from 6.67/6.68.
-- BERNAMA
