Ringgit expected to trade in narrow range against US dollar
KUALA LUMPUR: The ringgit is likely to remain range-bound against the US dollar next week, with market attention drawn to speeches by several US Federal Reserve (Fed) officials, an analyst said.
KUALA LUMPUR: Analysts predict the ringgit will stay within a narrow range against the US dollar for the upcoming week, as traders focus on speeches by several Federal Reserve officials, a Bank Muamalat Malaysia Bhd economist explained. Dr Mohd Afzanizam Abdul Rashid highlighted that multiple Fed officials are set to share their perspectives with the public, potentially offering insights into their thought process, especially with regards to the possible persistence of higher fuel prices.
The US Federal Reserve has forecasted a 25-basis point increase this year, suggesting a cautious approach to the ringgit's movement in the coming months. Consequently, the ringgit-dollar exchange rate is anticipated to remain steady, ranging between RM4.06 and RM4.09 during the week, according to the analyst. On a weekly basis, the ringgit weakened slightly against the US dollar, trading at 4.0795/0840 compared to 4.0685/0725 in the previous week.
However, the local currency performed better against major currencies, appreciating against the British pound, Japanese yen, and euro, as well as against several Asean currencies. The ringgit remained mostly higher against these currencies, but weakened against the Philippine peso.
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