Ringgit To Trade At 4.40-4.45 Against US Dollar Next Week

KUALA LUMPUR, Feb 8 (Bernama) -- The ringgit is expected to trade within the 4.40-4.45 range against the US dollar next week, driven by trade developments and broader risk sentiment, said Kenanga Investment Bank Bhd. 

The investment bank said the US dollar may not react immediately to tariff announcements by US President Donald Trump, as observed on Monday, but it could strengthen once duties take effect and appear more permanent.

It added that the focus remained on the US-China talks and European Union tariff risk. 

In a research note, the investment bank said signs of a cooling US labour market emerged, with the Job Openings and Labour Turnover Survey (JOLTS) data showing declining job openings.

“Investors now await the nonfarm payrolls data (released on Friday); benchmark revisions may weigh on the US dollar. A weak reading could signal slowing US growth, but an expected sticky inflation data next week keeps the US Federal Reserve’s (Fed) policy uncertainty alive,” it added.

For the week just ended, the ringgit moved in a rangebound trading mainly driven by a series of US tariff announcements by Trump and the market expectations that the Fed would stick to its game plan to cut the interest rates later in the year.

The ringgit swung between gains and losses, briefly weakening beyond 4.50 per US dollar on Monday after the Trump administration imposed tariffs. However, it later stabilised near 4.42-4.44 per US dollar following a last-minute 30-day deal to delay tariffs on Mexico and Canada.

On a Friday-to-Friday basis, the ringgit appreciated to 4.4375/4420 from 4.4550/4600 a week earlier.

Meanwhile, the local currency was mostly higher against a basket of major currencies.

It advanced against the British pound to 5.5278/5334 from 5.5336/5398 last week, rose vis-a-vis the euro to 4.6101/6148 from 4.6247/6299, but declined versus the Japanese yen to 2.9217/9249 from 2.8798/8832 at the end of the previous week.

The ringgit was mixed against ASEAN currencies.

It increased against the Thai baht to 13.1853/2041 from 13.2274/2498 last week and was higher versus the Indonesian rupiah at 272.4/272.9 from 273.2/273.6 in the previous week. 

However, the ringgit slipped against the Singapore dollar to 3.2866/2901 from 3.2854/2896 on Friday last week and was lower against the Philippine peso to 7.65/7.66 from 7.63/7.64 in the previous week.

-- BERNAMA