Ringgit likely to trade weaker between 4.64 and 4.67 next week

THE ringgit is likely to trend weaker against the US dollar next week following the expected stronger United States Consumer Price Index (CPI) data release, said an analyst.

The US CPI for September 2022 is scheduled to be released on Oct 13.

SPI Asset Management managing partner Stephen Innes expects the ringgit to trade between 4.64 and 4.67 or even push towards 4.70 against the US dollar if the US CPI inflation comes in strong next week.

 “I am taking a slightly more moderate view as global policymakers will push against the strong US dollar at the International Monetary Fund (IMF) meeting in Washington,” he told Bernama.

The 2022 IMF Annual Meetings will take place from Oct 10-16.

For the week just ended, the local currency traded mostly lower against the US dollar on the back of the US non-farm payrolls report and ongoing speeches by Federal Reserve officials.

On Friday, the ringgit fell against the greenback to 4.6480/6520 compared with 4.6360/6390 a week earlier.

On a Friday-to-Friday basis, the local note traded easier versus a basket of major currencies.

It depreciated against the Singapore dollar to 3.2529/2559 from 3.2343/2368 previously, weakened versus the British pound to 5.2132/2177 against 5.1728/1762 last week and fell against the euro to 4.5574/5613 from 4.5428/5458 a week earlier.

However, it rose vis-a-vis the Japanese yen to 3.2084/2116 from 3.2103/2126 previously. — BERNAMA / Pic by BLOOMBERG