KUALA LUMPUR, Dec 18 — The ringgit is expected to trade within the range of RM4.21 to RM4.22 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, whereby the Federal Reserve would be leading the pack in respect to monetary tightening in the advanced economies.
Next week, Malaysia’s Consumer Price Index for the month of November will be in focus as inflation rate is expected to accelerate further, possibly by more than three per cent after recording a 2.9 per cent gain year-on-year in October.
“It may bolster the sentiment of an earlier rate hike but it could be too soon to tell considering the downside risks are still outweighing the upside potential.
“Against such a backdrop, expect the ringgit to trade at RM4.21 to RM4.22 (versus the US dollar) next week,” he told Bernama.
Throughout this week, the local currency traded mostly lower against the greenback as markets continued to digest major central banks’ decision this week.
On a weekly basis, the ringgit slipped versus the greenback to 4.2190/2210 at Friday’s close from 4.2100/2150 a week earlier.
The local unit also depreciated against other major currencies compared to the previous Friday.
The ringgit fell against the Singapore dollar to 3.0899/0919 from 3.0815/0854 a week earlier and dropped versus the euro to 4.7805/7828 from 4.7497/7554 previously.
It eased against the Japanese yen to 3.7139/7160 from 3.7034/7081 last week and weakened vis-a-vis the British pound to 5.6180/6203 from 5.5576/5642 previously.
— Bernama
