KUALA LUMPUR: The ringgit is expected to stay defensive within a tight range next week, as traders and investors will continue to observe the military conflict in the Middle East, said an analyst.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the Israel-Iran war continues to take centre stage as the United States is still weighing its options to participate in the conflict.
“White House spokeswoman Karoline Leavitt indicated that President Donald Trump will make his decision whether or not to go within the next two weeks. The US Dollar Index (DXY) fell 0.22 per cent to 98.691 points.
“Apart from that, Personal Consumption Expenditures (PCE) inflation data for May 2025 will also be released next week. On that note, ringgit could stay within a range of RM4.24 to RM4.25 next week,” he told Bernama.
For the week just ended, the ringgit gave up its earlier gains at the beginning of the week as escalating geopolitical concerns spurred demand for the safe-haven US dollar.
However, the market showed a slight sign of recovery at the end of the week, as some investors took the opportunity to return to emerging currencies due to the latest White House announcement regarding the ongoing Iran-Israel war.
The ringgit ended the week easier against the greenback, closing at 4.2505/2565 on Friday from 4.2435/2480 a week earlier.
The local note traded mostly higher against a basket of major currencies.
The ringgit rose vis-à-vis the Japanese yen to 2.9245/9289 from 2.9448/9482 at Friday’s close, went up against the British pound to 5.7356/7437 from 5.7482/7543 previously, but depreciated versus the euro to 4.9000/9069 from 4.8906/8958 at the end of last week.
The ringgit traded mostly higher against ASEAN currencies.
The local note declined against the Singapore dollar to 3.3088/3140 on Friday from 3.3077/3118 in the previous week, advanced versus the Indonesian rupiah to 259.2/259.7 from 260.2/260.6 previously, and strengthened versus the Thai baht to 12.9727/9969 from 13.0807/1018 last week.
Meanwhile, the ringgit also rose against the Philippine peso at 7.43/7.45 compared to 7.55/7.56 previously.
