Ringgit seen remaining soft against US dollar next week
KUALA LUMPUR: The ringgit is expected to remain soft against the US dollar next week as the greenback remains well supported by expectations of further interest rate hikes by the US Federal Reserve (Fed).
The ringgit is forecasted to stay weak against the US dollar over the coming week, as the US currency remains bolstered by speculation of additional interest rate increases by the Federal Reserve. Bank Muamalat Malaysia's chief economist, Dr Mohd Afzanizam Abdul Rashid, posits that the US dollar's strength will persist due to the Fed's cautious monetary policy approach.
Market participants will also be monitoring the forthcoming release of US retail sales data for October, which is scheduled for November 17. The consensus forecast projects a modest 0.2 percent month-on-month increase in retail sales, a slight contrast to the 0.8 percent growth recorded in September. Dr Afzanizam anticipates the ringgit to fluctuate between RM4.07 and RM4.10 against the US dollar during the forthcoming week.
In the interim, the ringgit showed a downward trend on a Friday-to-Friday basis, falling from 4.0565/0610 to 4.0845/0890 relative to the greenback. Throughout the week, the local currency appreciated compared to several other major currencies, including the Japanese yen, British pound, and euro. However, the ringgit exhibited a weaker performance when compared to the Singapore dollar, which saw a decline from 3.1657/1694 to 3.1729/1769.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
