By Abdul Hamid A Rahman
KUALA LUMPUR, May 17 (Bernama) -- The ringgit’s outlook remains positive going into next week, with the currency expected to hover in the 4.26-4.29 range against the US dollar, according to SPI Asset Management managing partner Stephen Innes.
He said the potential for Federal Reserve (Fed) rate cuts and easing US yields could push the greenback lower.
“Recent US data came in below expectations, raising hopes for an interest rate cut, which weighed on the greenback. The softer US Consumer Price Index and Producer Price Index figures have raised hopes that the Fed may cut interest rates sooner than expected.
“Although the Fed has yet to confirm any changes, markets are already adjusting their expectations,” he told Bernama.
Innes said Malaysia’s first-quarter gross domestic product (GDP) growth of 4.4 per cent, though slightly below forecast, was in line with government targets and did not significantly impact the local currency.
“Market attention is now on forward risks, especially from the US, rather than past data,” he added.
The ringgit ended the week marginally higher against the US dollar, closing at 4.2900/2980 on Friday from 4.2970/3005 a week earlier.
The local note traded mostly higher against a basket of major currencies.
The ringgit appreciated versus the euro to 4.8022/8112 at Friday’s close from 4.8320/8359 at the end of last week and gained vis-a-vis the Japanese yen to 2.9470/9527 from 2.9565/9591 previously.
However, it eased against the British pound to 5.7018/7125 from 5.7004/7050 a week earlier.
The ringgit also traded mostly higher against ASEAN currencies.
It firmed vis-a-vis the Singapore dollar to 3.3041/3105 on Friday from 3.3095/3124 a week before, rose versus the Thai baht to 12.9003/9318 from 13.0082/0267 previously, and improved against the Philippine peso to 7.71/7.73 from 7.74/7.76.
Meanwhile, the local note edged down against the Indonesian rupiah to 260.8/261.5 from 260.0/260.4 last week.
-- BERNAMA
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