KUALA LUMPUR: The ringgit is expected trend around 4.77 to a US dollar this week as the greenback maintains its strength and as market continues diminishing the expectations of interest rate cuts, particularly in the United States.
SPI Asset Management managing director Stephen Innes said, however, much hinges on the responses of global bond markets as many traders are currently factoring in a level of central bank alignment with the US Federal Reserve (Fed).
He said this anticipation of central bank synchronicity could dampen the momentum of the strong US dollar in the coming days.
“The primary concern for the ringgit is whether the Fed will adopt a hawkish stance and rule out rate cuts at the upcoming Federal Open Market Committee (FOMC) meeting.
“However, it is likely that the Fed will wait to gauge US employment data and the next series of consumer price index figures before committing to a fully hawkish stance,” Innes told Bernama. — Bernama
