KUALA LUMPUR: The ringgit is expected to trade within the narrow range of 4.50 to 4.52 against the US dollar this week, reflecting subdued volatility and cautious sentiment among traders during the 7
SPI Asset Management managing partner Stephen Innes said there would be reduced trading activity due to the holiday season and the forex market is unlikely to see significant movements.
“The likelihood of substantial volatility is low unless an unexpected geopolitical or economic event occurs, although such surprises currently seem improbable. As a result, the market is expected to remain relatively calm,” he told Bernama. Innes said in this context, he expects the ringgit to remain stable, hovering close to last week’s closing level.
The ringgit consistently ended lower against the greenback throughout the week amid the uncertainty of the US interest rate outlook, especially after the US Federal Reserve signalled fewer rate cuts next year.
Additionally, upbeat US economic data lent further support to the greenback.
On a Friday-to-Friday basis, the ringgit declined against the US dollar to 4.5055/5100 from 4.4475/4525 two weeks ago.
For the week, the local note traded mostly lower against other major currencies.
It depreciated versus the euro to 4.6776/6823 from 4.6632/6684 and dipped against the British pound to 5.6328/6384 versus 5.6203/6266 previously. It rose against the Japanese yen to 2.8747/8779 from 2.8987/9022 at the previous week’s close.
The ringgit traded lower against ASEAN currencies, dipping against the Singapore dollar to 3.3146/3181 from 3.2971/3011 and easing against the Thai baht to 13.0670/0861 from 13.0261/0472. It fell against the Philippine peso to 7.66/7.67 from 7.60/7.62 in the previous Friday. The local note was flat against the Indonesian rupiah at 277.7/278.1 from 277.7/278.2 previously. – BERNAMA
