Ringgit likely to trade between 4.38 and 4.40 level against US dollar next week

KUALA LUMPUR – The ringgit is expected to trade between the 4.38 and 4.40 level against the US dollar next week with an upward bias, especially if foreign exchange (FX) markets continue to price in a slowdown in the US interest rate hike cycle with Malaysia’s new Cabinet offering further support.

SPI Asset Management managing director Stephen Innes has cautioned that this is premised on things remaining relatively calm and that China continues with its reopening plans.

“The only hiccup I see is potential civil unrest in China over the weekend because if we look back at the unrest in Hong Kong a few years ago, it really accelerated on weekends,” he told Bernama.

He said the announcement of Malaysia’s Cabinet last night would pave the way for the country’s budget to be tabled and markets will be bullish on hints of political stability.

On a week-on-week basis, the ringgit touched a level not seen since June this year, trading at 4.3835/3925 against the US dollar from 4.4795/4890 on the previous Friday.

The local note was traded mostly higher against a basket of major currencies.

It appreciated against the Singapore dollar to 3.2463/2535 from 3.2573/2645 from last Friday, higher against the euro at 4.6136/6231 from 4.6551/6650 and was better against the British pound at 5.3781/3892 from 5.4094/4209.

However, it declined vis-a-vis the Japanese yen to 3.2698/2768 from 3.2118/2188 a week before. – Bernama / pic TMR File