The ringgit is forecast to trade between 4.10 and 4.12 versus the US dollar, supported by expectations of a US Federal Reserve rate cut.
KUALA LUMPUR: The ringgit is expected to remain steady and trade within the 4.10 to 4.12 range against the US dollar next week.
This outlook is supported by market expectations of an interest rate cut by the US Federal Reserve at its upcoming meeting.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said most traders anticipate a 25-basis-point cut at the Federal Open Market Committee meeting scheduled for 9-10 December.
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“The focus next week will be on the FOMC meeting and, more importantly, the policy guidance,” he told Bernama.
He highlighted that the Fed’s latest quarterly projections on macroeconomic variables, particularly the federal funds rate and inflation forecast, will be key.
Earlier this week, the local note was flat on Monday before strengthening from Tuesday through Friday.
It touched the 4.11 level on Thursday, its strongest level in four years and five months.
On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.1105/1140 compared with 4.1300/1350 last week.
The local note traded lower against a basket of major currencies.
It weakened against the yen to 2.6536/6561 from 2.6420/6456 and slid versus the euro to 4.7912/7953 from 4.7768/7825.
The ringgit also slipped vis-a-vis the British pound to 5.4859/4905 from 5.4528/4594 at last week’s close.
The ringgit trended mostly higher against its ASEAN peers.
It appreciated versus the Indonesian rupiah to 246.8/247.2 from 247.6/248.0 last week.
The local currency increased against the Singapore dollar to 3.1741/1773 from 3.1813/1857 previously.
It was higher against the Philippine peso at 6.97/6.98 from 7.04/7.06.
However, the local currency decreased versus the Thai baht to 12.9054/9221 from 12.8245/8472 a week ago. – Bernama
