KUALA LUMPUR: The ringgit is likely to trade within a narrow range against the US dollar next week as external drivers remain dominant.
IPPFA Sdn Bhd investment strategy director and country economist Mohd Sedek Jantan said while Malaysia’s growth profile provides a firm fundamental anchor, near-term direction will be driven by US dollar dynamics, oil price volatility and evolving geopolitical developments.
"Brent crude oil is expected to remain above US$90 per barrel, offering a supportive terms of trade backdrop that should help anchor the currency.
"However, any adverse geopolitical escalation, particularly stemming from policy signals or announcements by Donald Trump related to West Asia, could quickly shift market sentiment, reinforcing dollar strength and introducing downside risks to the ringgit,” he told Bernama.
The ringgit appreciated against the US dollar at 3.9505/9545 on Friday, compared with 3.9625/9680 at the end of the previous trading week.
The local note traded mostly lower against a basket of major currencies this week.
It weakened against the British pound to 5.3454/3508 from 5.3248/3322, and slipped against the euro to 4.6588/6635 from 4.6401/6465, while it enhanced versus the Japanese yen to 2.4838/4865 from 2.4882/4918 a week ago.
Meanwhile, the ringgit was traded higher against its ASEAN peers.
It appreciated versus the Singapore dollar to 3.1053/1086 from 3.1093/1139, strengthened against the Thai baht to 12.3084/3274 from 12.3289/3525, expanded versus the Indonesian rupiah to 229.8/230.1 from 231.6/232.0, and elevated against the Philippine peso to 6.58/6.59 from 6.60/6.62 previously. - Bernama
