KUALA LUMPUR (Bernama): The ringgit is expected to trade within a narrow range between RM4.05 and RM4.07 against the US dollar this week as investors await the release of the United States Consumer Price Index (CPI) report next Tuesday, which could set the tone for global financial markets, said analysts.
SPI Asset Management managing partner Stephen Innes said the US inflation data could be the next major catalyst for market sentiment.
"There is a reasonable chance the data could come in softer, particularly if lower energy prices reverse last month’s inflation spike.
"A softer CPI reading would likely strengthen expectations of a US Federal Reserve monetary policy easing, weighing on the US dollar and providing a more favourable backdrop for the ringgit,” he told Bernama.
On a Friday-to-Friday basis, the ringgit slid marginally to 4.0695/0745 against the US dollar from 4.0690/0735 a week earlier.
The local currency traded mostly higher against a basket of major currencies during the week.
It strengthened against the Japanese yen to 2.5148/5181 from 2.5253/5281, and improved vis-à-vis the euro to 4.6502/6559 from 4.6553/6606 previously.
However, it slid against the British pound to 5.4572/4639 from 5.4325/4385 last week.
The ringgit was mostly higher against ASEAN currencies.
It was slightly lower against the Singapore dollar at 3.1520/1561 from 3.1521/1558, but rose against the Thai baht to 12.2101/2302 from 12.2782/2966 previously.
The local currency strengthened against the Indonesian rupiah to 225.2/225.6 from 226.5/226.8, and improved against the Philippine peso to 6.61/6.62 from 6.62/6.63 last Friday. -- BERNAMA
