KUALA LUMPUR: The ringgit is expected to trade between 4.4275 and 4.4575 against the US dollar next week, a wider range than normal due to the uptick in market volatility.
“I think the ringgit will trade defensively next week unless we get a drop in the US personal consumption expenditures (PCE) indicator,” said SPI Asset Management managing director Stephen Innes.
“However, if the data comes in higher than expected, it will set up the path towards a stronger US dollar next week, and hurt Asian currencies including the ringgit,“ he told Bernama.
He said the US PCE data will set the stage for the US Federal Reserve (Fed) meeting on March 22 on interest rates.
During the week, the ringgit was mostly lower against the greenback on worries over the US Fed) decision on interest rates, higher US yields and weaker oil prices.
The local currency ended the week easier against the US dollar on a lack of buying momentum, in line with the weaker sentiment of other Asian currencies.
On a week-on-week basis, the ringgit was weaker against the US dollar at 4.4335/4370 at Friday’s close versus 4.4310/4345 a week earlier.
However, the local note mostly appreciated against a basket of major currencies compared to a week earlier.
It fell against the British pound at 5.3308/3350 from 5.2919/2961 and strengthened versus the Singapore dollar to 3.2970/3001 from 3.3062/3093.
The local unit also increased vis-a-vis the euro to 4.6933/6970 from 4.7137/7174 and gained against the Japanese yen to 3.2804/2833 from 3.2864/2892. – Bernama