‘Cautious trade against greenback in near term’
The ringgit is expected to trade cautiously against the US dollar in the near term as investors continue to closely monitor local and global economic developments, said an analyst.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said among others, US Federal Reserve (Fed) chairman Jerome Powell clearly indicated that the option for a rate rise was not in the central bank’s baseline scenario, although it was still concerned over the inflation rate.
“An important event (this week) is Bank Negara Malaysia’s Monetary Policy Committee meeting on May 9, especially on its assessment on the recent policy changes.
“Other than that, a series of Purchasing Managers’ Indices data, the Reserve Bank of Australia’s interest rate decision and China’s trade data will also be released.
“On that note, the ringgit should linger around 4.73 to 4.74 versus the US dollar.”
Last week, the ringgit, along with other Asean currencies, reacted to the US Federal Open Market Committee meeting that concluded on Thursday.
A dealer said the outcome of the meeting clearly showed that the “higher for longer” narratives for the US interest rate were likely to stay in the near future, given the lack of progress in US inflation reaching the Fed’s target.
On a Friday-to-Friday basis, the ringgit rose to 4.7370/7400 versus the greenback from 4.7650/7710 a week earlier.
The local note also improved against the British pound to 5.9487/9525 from 5.9644/9719 and appreciated vis-a-vis the euro to 5.0890/0922 from 5.1157/1221 previously.
However, it slipped against the yen to 3.0947/0968 from 3.0408/0451 previously.
It appreciated against the baht to 12.8723/8850 from 12.8902/9120 lat Friday and climbed versus the Philippine peso to 8.25/8.27 from 8.26/8.27 previously.
However, it slipped against the rupiah to 294.4/294.8 from 293.9/294.4 and eased versus the Singapore dollar to 3.5027/5054 from 3.5021/5068.