KUALA LUMPUR, April 9 — The ringgit is expected to continue to move in a range-bound mode next week, with investors likely to exercise caution ahead of global economic developments, analysts said.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors will likely pay close attention to the United States (US) inflation number next week.
“The US Consumer Price Index (CPI) is expected to reach 8.3 per cent year-on-year in March based on consensus estimates from 7.9 per cent in the previous month,” he told Bernama.
In the meantime, he said there are several other Federal Reserve (Fed) officials who will be speaking to the public regarding the US monetary policy moving forward.
“Their hawkish remarks would certainly help to bolster the value of the US dollar. As such, the ringgit should stay soft next week and would oscillate around 4.22 level,” he added.
Meanwhile, SPI Asset Management managing partner Stephen Innes noted that investors would monitor closely the rising Covid-19 cases in China amid the hawkish Fed that could keep the ringgit trading defensively.
“Most of the chatter centre around the hawkish Fed but this could belie the Asia-centric and possible global stagflation effect from the China lockdown,” he said.
On a weekly basis, the ringgit was lower against the greenback at 4.2195/2230 yesterday from 4.2110/2135 a week ago.
Meanwhile, the local currency traded higher against a basket of major currencies on a Friday-to-Friday basis.
It rose against the Japanese yen to 3.4004/4034 from 3.4376/4399 a week earlier and gained vis-a-vis the Singapore dollar to 3.0953/0981 from 3.1061/1082.
The local unit strengthened against the British pound to 5.5026/5072 from 5.5286/5319 last week and improved versus the euro to 4.5858/5896 from 4.6557/6584 previously. — Bernama
