KUALA LUMPUR: The ringgit will likely trade in a cautious mode next week with investors eyeing updates on the global economic performance.
SPI Asset Management managing director Stephen Innes told Bernama that; “The local currency is expected to trade in a range of between 4.66 and 4.68 against the US dollar next week.”
Meanwhile, Hong Leong Research said growth in the US economy and labour market have largely stayed resilient despite tentative signs of softening while core and inflationary expectations have remained elevated albeit moderating inflation.
It said in view of this, the US Federal Reserve has revised its gross domestic product (GDP) growth and core personal consumption expenditures price index (PCE) upwards for 2023, spurring the odds of a stronger US dollar.
On the domestic front, Hong Leong said a less hawkish tone in Bank Negara Malaysia’s (BNM) latest monetary policy statement and slightly accommodative policy stance implied that the current overnight policy rate (OPR) is near the neutral level.
“While there could still be room for a 25 basis points hike, moderating growth and inflation prospects will support our view for OPR to stay unchanged at three per cent for the remaining of 2023, capping excessive gains in the ringgit,” it said.
On a Friday-to-Friday basis, the ringgit rose against the US dollar to 4.6635/6705 from 4.6760/6805 a week earlier.
The local currency went up against the Japanese yen to 3.2220/2273 from 3.2645/2680 on the previous Friday, appreciated vis-a-vis the British pound to 5.8923/9012 from 5.9469/9527 and improved versus the euro to 5.0571/0647 from 5.0781/0830.
Similarly, the ringgit traded mostly higher against its Asean peers.
It strengthened against the Indonesian rupiah to 309.5/310.1 from 311.7/312.2 previously, higher against the Singapore dollar to 3.4376/4431 from 3.4568/4604 a week earlier and gained versus the Thai baht to 13.1529/1786 from 13.2765/2950 last week.
However, the local unit eased vis-a-vis the Philippine peso to 8.44/8.46 from 8.38/8.40 last Friday. – Bernama
