RINGGIT SEEN TO TRADE WITHIN RM4.12-RM4.14 NEXT WEEK

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Nov 29 (Bernama) -- The ringgit is expected to hold steady within RM4.12 to RM4.14 next week as traders and investors remain cautious ahead of the US Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) meeting in December.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Fed’s interest rate decision, with the probability of a 25-basis-point cut exceeding 80 per cent, continues to be a key factor influencing the local currency.

“Next week, key US data to watch include the Institute for Supply Management (ISM) index, Personal Consumption Expenditures (PCE) inflation, and the University of Michigan Consumer Sentiment Index (CSI),” he told Bernama.

The local note rose on Monday, Tuesday, and Thursday, but eased on Wednesday, ending the week firmer amid rising expectations of a US interest rate cut in December.

Meanwhile, Kenanga Investment Bank Bhd (Kenanga IB) said the ringgit strengthened within a narrow RM4.13-RM4.14 range against the US dollar as the US Dollar Index (DXY) slipped below the 100.0 level.

Mohd Afzanizam said Bank Muamalat also expects the US dollar–ringgit pair to trade stronger in the RM4.12-RM4.13 band next week.

“With little to challenge the prevailing ‘Fed-cut’ narrative, investors may continue reinforcing December-cut bets, leaving US dollar risks skewed to the downside,” Kenanga IB said in a note.

On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.1300/1350 compared with 4.1460/1495 last week.

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

It improved against the yen at 2.6420/6456 from 2.6453/6479, gained versus the euro to 4.7768/7825 from 4.7779/7819 but fell against the British pound at 5.4528/4594 from 5.4143/4188 at last week’s close.

The ringgit trended mixed against its ASEAN peers.

It rose versus the Indonesian rupiah to 247.6/248.0 from 248.0/248.3, appreciated versus the Indonesian rupiah to 247.6/248.0 from 248.0/248.3, but fell against the Singapore dollar to 3.1813/1857 from 3.1695/1724 and was flat against the Philippine peso at 7.04/7.06 from 7.04/7.05.

-- BERNAMA