The Malaysian Ringgit is expected to trade at around MYR4.50 to the United States (US) dollar next week, with investors being cautious ahead of the US inflation report as well as a series of speeches by US Federal Reserve (Fed) officials scheduled during the period.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the focus would be on the US inflation rate, with the Producer Price Index to be released on Tuesday and the Consumer Price Index on Wednesday.
“Along the way, there will be series of speeches by Fed officials at public events that will add more colour as to how the Fed would navigate its policy lever this year.
“Judging from the prevailing data points and commentaries from Fed officials, it appears that the Fed Funds Rate would be maintained at 4.50-4.75 per cent when the Federal Open Market Committee members reconvene on January 28-29,” he told Bernama.
During this week, global economic prospects – through data such as positive US job openings and ISM Index for the non-manufacturing sector – continued to provide support for the greenback, which impacted the ringgit’s performance.
On a Friday-to-Friday basis, the ringgit appreciated against the US dollar to 4.4945/5000 from 4.4975/5030 a week ago.
Meanwhile, the local note was traded mostly higher against a basket of major currencies.
It gained versus the British pound to 5.5296/5364 from 5.5800/5869 at the end of the previous week and increased vis-a-vis the Japanese yen to 2.8461/8497 from 2.8606/8643. However, it fell against the euro to 4.6298/6355 from 4.6288/6345 previously.
