BERNAMA – The ringgit is expected to trade higher against the United States (US) dollar as the interest rate differential seems to favour the ringgit, said an economist.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Bank Negara Malaysia (BNM) is likely to maintain the overnight policy rate (OPR) throughout next year and noted that concerns over Donald Trump’s policies could lead traders and investors to adopt a more cautious approach.
“The ringgit is likely to appreciate since the interest gap favours it, especially as BNM may maintain the OPR throughout next year.
“But anxiety over Trump’s policies next year could put off traders and investors and they would err on the side of caution,” he told Bernama.
At the current juncture, the support and resistance level stands at MYR4.3259 and MYR4.4390, respectively, said Mohd Afzanizam.
“Perhaps, the USD/MYR could remain guarded and revolve around MYR4.37 to MYR4.38,” he said.
Mohd Afzanizam said key data points for would be the US Consumer Price Index and Producer Price Index on Wednesday and Thursday.
“As for Malaysia, the third quarter of 2024 (3Q2024) gross domestic product (GDP) will be out on Friday with consensus pencilling in a 5.3 per cent growth.
“Along the way, there will be speakers from the US Federal Reserve (Fed) officials that will share their thoughts on the economy and policies, especially in the context of the recent presidential election result and how this would shape Fed’s monetary policy stance,” he added.
