KUALA LUMPUR, April 10 — The ringgit is expected to trade in a tight range against the US dollar next week at between 4.1275 and 4.1475 as the market cautiously monitors US Treasury yields and oil prices, said AxiCorp chief global market strategist Stephen Innes.
The latest news of China’s higher inflation in March due to the surging commodity costs would also have an influence on the ringgit’s performance next week, he said.
“The market is also anticipating China to quell its credit impulse, which is potentially negative for commodity exporters like Malaysia,” he told Bernama.
On top of that, the market is keeping an eye on the outcome of the Monetary Policy Committee meeting on May 6. He said Bank Negara Malaysia might revise up the Overnight Policy Rate, which could also weigh on foreign investors’ bond appetite.
“Local traders will also focus on the US consumer price index for March, which is scheduled for release on April 13,” he added.
On a Friday-to-Friday basis, the ringgit strengthened versus the US dollar to 4.1330/1370 from 4.1380/1420 a week earlier.
The local note was mostly lower against other major currencies.
It fell against the Singapore dollar to 3.0800/0839 from 3.0780/0816 a week earlier and weakened against the Japanese yen to 3.7689/7733 from 3.7455/7494.
The ringgit firmed up vis-a-vis the British pound to 5.6618/6685 from 5.7241/7309 on Friday last week and contracted against the euro to 4.9141/9205 from 4.8733/8797 a week ago. — Reuters