KUALA LUMPUR: The ringgit is expected to decline further against the US dollar this week, possibly in the 4.75 range, say analysts.
SPI Asset Management managing director Stephen Innes reckons that the US Federal Open Market Committee could lose its patience as inflation is not falling fast enough in the United States, which would mean more aggressive hikes and a strong US dollar.
“There seems to be a consensus that inflation remains stubborn and unacceptably high, hence the market also thinks further rate hikes are required,” he said.
Principal Asset Management Bhd’s South-East Asia chief investment officer for Malaysia Patrick Chang said the economic outlook remains challenging as investors had factored in a potential economic downturn.
This, and concerns about the interest rate hikes in the United States, coupled with slower growth in China, had led to heightened concerns over the economic outlook, he said.
