KUALA LUMPUR: The ringgit is expected to continue its uptrend against the US dollar this week on the back of positive sentiment ahead of the release of macroeconomic data, says an analyst.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid opined that investors’ focus will be on Malaysia’s gross domestic product data for the second quarter of 2024 (2Q24) due Friday.
Apart from that, he said the United States consumer price index (CPI) for July due on Wednesday will also be the key highlight, with a consensus estimate pencilling in 2.9% after moderating at 3% in June.
“It appears that the ringgit against the US dollar might want to test its immediate support level of 4.40 next week given the positive vibes in the market,” he told Bernama.
On the other hand, Kenanga Investment Bank Bhd
in its ringgit weekly outlook noted that despite the ringgit’s bullish momentum, the greenback might regain its safe-haven appeal.
This is due to the lower-than-expected US weekly initial jobless claims, coupled with anticipation of a better US CPI next week that could temper expectations for aggressive rate cuts.
