KUALA LUMPUR: The ringgit is likely to remain range-bound against the US dollar this week, with market attention drawn to speeches by several US Federal Reserve (Fed) officials, an analyst says.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that a series of Fed officials are expected to share their thoughts with the public.
More insights can perhaps be gleaned on their thought process when the risk of higher fuel prices are likely to stay, he told Bernama.
According to the latest US Fed forecast, there would be another 25-basis point hike this year, said Mohd Afzanizam.
“Hence, we will see the degree of conviction for rate hike in the months to come.
“On that note, (trading in) the ringgit is expected to stay cautious this week. We foresee the ringgit-dollar (rate) to range between RM4.06 and RM4.09 this week,” he said.
Meanwhile, on a Friday-to-Friday basis, the ringgit weakened against the greenback to 4.0795/0840 from 4.0685/0725 a week earlier.
However, the local currency traded higher against a basket of major currencies during the week.
The ringgit appreciated versus the British pound to 5.4543/4603 from 5.4961/5015 on the previous Friday, gained against the Japanese yen to 2.5829/5860 from 2.6400/6428, and rose vis-a-vis the euro to 4.6849/6901 from 4.7178/7225.
It also traded mostly higher against Asean currencies. The local note edged up versus the Singapore dollar to 3.1933/1971 from 3.2091/2125 a week earlier, and strengthened vis-a-vis the Thai baht to 12.2383/2562 from 12.3072/3241.
