KUALA LUMPUR: The ringgit is expected to trade within a tight range next week as investor focus shifts to the United States’ anticipated interest rate cut.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit may climb higher after breaching the RM4.20 level, especially if the US Federal Reserve quarterly projections signal a more dovish stance.
SPI Asset Management managing director Stephen Innes shared a similar view, projecting the ringgit to hover between RM4.19 and RM4.21.
"Yesterday’s gains have put RM4.20 firmly on the radar for next week, as markets continue to prioritise labour market weakness over persistent inflation,” he noted.
On a weekly basis, the ringgit ended the week higher against the greenback, closing at 4.1975/2080 versus 4.2260/2320 previously.
The local note traded mostly lower against a basket of major currencies.
The ringgit appreciated vis-a-vis the Japanese yen to 2.8373/8446 from 2.8489/8531 in the previous week, but eased against the British pound to 5.6864/7006 from 5.6793/6874, and it was flat versus the euro to 4.9203/9326 from 4.9203/9273.
However. the ringgit was mostly higher against ASEAN peers.
It gained against the Singapore dollar to 3.2719/2803 from 3.2775/2824 at the end of last week, increased against the Indonesian rupiah to 256.3/257.0 from 257.3/257.7, and advanced against the Philippine peso to 7.35/7.37 from 7.40/7.42 previously.
However, it slid against the Thai baht to 13.2317/2703 from 13.0666/0908 in the previous week. - Bernama
