KUALA LUMPUR: The ringgit is expected to trade around the four level against the US dollar this week, as expectations of a prolonged West Asia conflict weigh on the currency.
Kenanga Investment Bank Bhd
(Kenanga IB) said investors are likely to remain overweight on the greenback as a hedge against renewed escalation once the US 10-day pause on strikes against Iran’s energy facilities ends.
“The ringgit’s initial outperformance faded in a late-cycle correction, as the benchmark Brent crude oil holding near US$100 per barrel has heightened US inflation concerns.
“Consequently, investors have priced in a more hawkish Federal Reserve (Fed), supporting the greenback,” it said in a note.
Kenanga IB anticipates the West Asia conflict to extend into the third quarter of 2026 (3Q26), keeping the Fed restrictive until 4Q26. — Bernama
