KUALA LUMPUR, Dec 24 ― The ringgit is likely to trade higher against the US dollar next week, between the 4.41 and 4.43 level, with traders keeping a keen eye on China and the movement of oil prices, said an analyst.
SPI Asset Management managing director Stephen Innes expects the domestic unit to trade on a favourable note into the new year as the local political ringgit discounts evaporate as investors gain more confidence in the government.
“I expect the ringgit to trade very transactionally next week, given markets are entering a week-long holiday period... but it will depend on the United States core personal consumption expenditures inflation data released on Friday, continuing to point toward easing inflation in the US market.
“If it comes in soft or on consensus, the ringgit will strengthen next week while the opposite will hold true,” he told Bernama.
The ringgit traded mostly lower throughout the week amid a weak economic front globally.
Malaysia’s inflation in November 2022 increased by 4.0 per cent year-on-year with food inflation continuing to be the main driver.
Meanwhile, core inflation grew slightly to 4.2 per cent in November compared with 4.1 per cent in October.
On a week-on-week basis, the ringgit depreciated slightly against the US dollar to 4.4225/4260 yesterday from 4.4220/4265 a week earlier.
The local note was traded mixed against a basket of major currencies.
It strengthened against the British pound to 5.3349/3391 from 5.3705/3760 on the previous Friday but declined against the Singapore dollar to 3.2754/2785 from 3.2531/2569 last week.
The local unit was broadly lower vis-a-vis the Japanese yen to 3.3352/3381 from 3.2230/2265 and was almost flat against the euro at 4.6927/6964 from 4.6926/6974 over the seven-day period. ― Bernama
