KUALA LUMPUR, Dec 7 —The ringgit is expected to stay in rangebound trade between RM4.42 and RM4.43 against the United States (US) dollar next week on caution ahead of more data from the US.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the focus next week will be on the US Consumer Price Index report on Wednesday (December 11).
“This (data will be) quite critical as the following week the US Federal Open Market Committee (US FOMC) will meet to make a monetary policy decision, hence there would be a blackout period from December 7 to December 19, where FOMC participants and staff are barred from giving public interviews.
“In that sense, it will leave the markets with (only) the data points to make their inferences of (what) decision the US Federal Reserve would make,” he told Bernama.
US data points this week have been supportive of a 25 basis points rate cut in the upcoming US FOMC meeting on December 17 to December 18.
“This has translated into further support to ringgit after the ringgit correction following the conclusion of the US presidential election on November 5,” he added.
On a Friday-to-Friday basis, the ringgit appreciated against the US dollar to 4.4170/4220 from 4.4425/4495 a week ago.
For the week, the local note traded higher against other major currencies.
It strengthened versus the euro to 4.6719/6771 against 4.6899/6973, appreciated against the British pound to 5.6352/6416 versus 5.6384/6473 and rose against the Japanese yen to 2.9329/9364 from 2.9589/9638 at last week’s close.
It traded mixed against Asean currencies.
It went up against the Singapore dollar to 3.2963/3002 from 3.3146/3200 but eased against the Thai baht, closing at 12.9576/9784 compared to 12.9459/9738 last Friday. The local note climbed vis-a-vis the Indonesian rupiah to 278.7/279.2 from 280.2/280.8 and was lower against the Philippine peso at 7.65/7.66 from 7.58/7.59.
— Bernama
