Ringgit expected to remain soft at RM4.76 to RM4.77 range against US dollar

KUALA LUMPUR: The ringgit is expected to remain soft, with a possible range of around RM4.76 to RM4.77 against the US dollar, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit was generally on the weaker bias given that the US economy was fairly robust relative to its G7 peers.

Hence, the US dollar would likely be in high demand, he told Bernama.

“Moreover, the Federal Reserve is seen as not going to reverse its restrictive stance on monetary policy, giving added advantage to the greenback,” he said.

For the holiday-shortened week just ended, the local note was traded mixed amid Malaysia’s fourth quarter 2023 gross domestic product announcement, the US interest rate cuts and positive sentiment on the equity market.

On a Friday-to-Friday basis, the ringgit was traded lower against the US dollar at 4.7765/7820 compared to 4.7595/7705 a week earlier.

The local note also traded easier against other major currencies, except that it rose vis-a-vis the Japanese yen to 3.1780/1818 from 3.1849/1925 a week earlier.

It decreased against the British pound to 6.0117/0186 from 6.0017/0156 and depreciated versus the euro to 5.1419/1478 versus 5.1241/1359 previously.

The ringgit was traded lower against a few Asean currencies.

It eased versus the Singapore dollar to 3.5479/5522 from 3.5342/5429 a week ago and fell against the Indonesian rupiah to 305.7/306.1 compared to 304.3/305.2 previously.

The ringgit slipped against the Philippine peso to 8.53/8.55 from last week’s closing rate of 8.51/8.55 and was down against the Thai baht to 13.2559/2763 from 13.2540/2902 last Friday.