Ringgit Set To Remain Stable At 3.95 Level Against US Dollar Next Week
By Danni Haizal Danial Donald
KUALA LUMPUR, March 21 (Bernama) -- The ringgit is expected to remain stable next week, trading at around the 3.95 level against the US dollar amid the festive period.
The market in Malaysia was closed yesterday and will also be closed on Monday, March 23, for the Aidilfitri celebration.
Kenanga Investment Bank Bhd said the restrictive but easing-biased United States Federal Reserve (Fed) capped further gains from the greenback, contributing to the stability.
In a note issued on Thursday, the investment bank said investors remain defensive while expectations for a Fed policy pivot shift to the final quarter of the year
“We assume the West Asia conflict persists while the Fed looks through the current transitory inflation bump.
“Malaysia’s status as a net energy exporter provides a structural hedge as Brent crude retains an embedded risk premium,” it said.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit-US dollar pair is expected to trade sideways next week.
He said investors are observing the uncertainties surrounding the ongoing war in Iran.
On a week-on-week basis, the ringgit settled slightly higher against the US dollar to close at 3.9330/9415 on Thursday compared with 3.9365/9410 at the end of the previous trading week.
The local note traded lower against a basket of major currencies this week.
It edged down versus the Japanese yen to 2.4716/4771 from 2.4683/4715 on Friday last week, slipped vis-a-vis the British pound to 5.2246/2359 from 5.2214/2273 previously and eased against the euro to 4.5139/5237 from 4.5093/5144.
However, the ringgit performed stronger against its ASEAN peers.
The local currency appreciated versus the Singapore dollar to 3.0671/0740 from 3.0730/0767 at the end of last week, rose against the Thai baht to 11.9872/12.0204 from 12.1862/2062 last Friday, firmed vis-a-vis the Indonesian rupiah to 231.4/232.0 from 232.1/232.5 previously and increased against the Philippine peso to 6.54/6.56 from 6.59/6.60.
-- BERNAMA
