Ringgit set to trade from 4.19-4.21 against US dollar next week


KUALA LUMPUR – The ringgit is expected to trade within the range of RM4.19 to RM4.21 against the US dollar next week on mixed market sentiment, said an economist.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the main narratives would be fairly unchanged in the coming week, with investors fixated on the Ukraine war.

“Given a series of sanctions, perhaps the markets would want to see how the Russian government would react. For now, it is going to be wait-and-see,” he told Bernama.

On Feb 24, Russian President Vladimir Putin announced a special military operation in eastern Ukraine’s Donbas region.

RHB Research, in its research note, said the local currency will remain under pressure given the risk-off sentiment as well as the broad-based US dollar strength.

On a weekly basis, the ringgit fell versus the US dollar to 4.2005/2040 from 4.1845/1870 a week ago.

The local currency traded mostly higher against other major currencies on a Friday-to-Friday basis.

The ringgit appreciated against the Singapore dollar to 3.1016/1044 from 3.1149/1170 a week earlier, rose against the British pound to 5.6177/6224 from 5.7001/7035, and it strengthened versus the euro to 4.6966/7005 from 4.7578/7606.

However, against the Japanese yen, it depreciated to 3.6422/6455 from 3.6340/6361.