KUALA LUMPUR – The ringgit is expected to continue trading cautiously next week as investors remain wary of the global economic outlook.
SPI Asset Management managing director Stephen Innes said the local currency is expected to trade in a tight range between 4.65 and 4.67 against the US dollar, guided by global economic data releases.
“Much of next week’s price action will depend on the global economic data, including the inflation print due out of China next week, which could keep the ringgit trading cautiously,” he said.
Meanwhile, on Thursday, Bank Negara Malaysia’s Monetary Policy Committee announced the decision to maintain the overnight policy rate at 3.00%.
The central bank said the Malaysian economy has continued to grow as income and employment remain favourable and will continue to support household spending.
On that note, Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the ringgit is expected to continue hovering around 4.66 against the greenback next week.
On a Friday-to-Friday basis, the ringgit was slightly lower against the US dollar, to 4.6655/6675 from 4.6635/6705 a week earlier.
The local unit was trading lower against major currencies.
It went down against the Japanese yen to 3.2601/2617 from 3.2220/2273 on the previous Friday, depreciated vis-a-vis the British pound to 5.9466/9492 from 5.8923/9012 and declined versus the euro to 5.0765/0787 compared to 5.0571/0647 previously.
The ringgit was traded mixed against its Asean peers.
It strengthened against the Indonesian rupiah to 308.0/308.3 from 309.5/310.1 previously and improved vis-a-vis the Philippine peso to 8.39/8.39 versus 8.44/8.46 last Friday.
However, the local unit was lower against the Singapore dollar to 3.4511/4528 from 3.4376/4431 a week earlier and fell against the Thai baht to 13.2471/2588 from 13.1529/1786. – Bernama, July 8, 2023
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