Ringgit likely to trade in tight range next week

KUALA LUMPUR: The ringgit is likely to stay in a tight range between RM4.63 and RM4.65 against the US dollar next week amid cautious market sentiment.
 
Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said investors are expected to take fresh leads from United States Federal Reserve (US Fed) chair Jerome Powell’s speech at last night’s Jackson Hole Symposium.
 
“Powell’s speech is very important and will shed light on US monetary policy and will dictate the value of the ringgit next week,” he told Bernama.
 
He noted that the US dollar is expected to remain strong in light of the US Fed’s hawkish stance.
 
On a Friday-to-Friday basis, the ringgit was higher against the US dollar at 4.6385/6430 from 4.6465/6510 a week earlier.
 
The local unit was also traded higher against other major currencies.
 
It appreciated against the British pound to 5.8385/8441 compared to 5.9131/9189 the previous Friday, rose against the euro to 5.0054/0103 from 5.0503/0552, and gained vis-a-vis the Japanese yen to 3.1757/1790 from 3.1926/1959 previously.
 
Similarly, the ringgit was traded mostly higher against its Asean peers.
 
The local unit increased against the Singapore dollar to 3.4202/4238 from 3.4228/4264 a week earlier and inched up against the Indonesian rupiah to 303.2/303.7 from 303.9/304.2.
 
It strengthened vis-a-vis the Philippine peso to 8.20/8.21 from 8.27/8.28 but was lower against the Thai baht at 13.2121/2309 from 13.1331/1510 last Friday. – BERNAMA