kuala lumpur: Ringgits are expected to remain defensive within 4.43-4.44 against the US dollar next week.
Dr. Mauamarat Malaysia BHD Chief Economist Dr. Mauafzanizam Abdulrashid noted that the next trend in the currency market is based on the Federal Open Market Committee meeting held from March 18-19.
“Economists have almost always been pencilled in with no change in the US (US) federal funding rate, but quarterly forecasts for Federal Reserve staff are carefully scrutinized by traders and investors.
“This is especially true when US recession demands are widely shared by major investment banks,” he told Bernama today.
Additionally, both the Bank of Japan and Sweden’s Sverigesrikbank are scheduled to hold a monetary policy meeting next week, with both central banks expected to stabilize their policy rates at 0.50% and 2.25% respectively.
Meanwhile, Stephen Innes, managing partner of SPI Asset Management, hopes that ringgits will weaken further in the coming months as the market moves from tariff-related attention to addressing full impacts.
“We expect the drift to be higher next week as sentiment continues sourly, as it is likely that the ringgit is approaching RM4.46.
“Therefore, the ringgit is likely to be replaced in the range of RM4.43 to RM4.46, with a clear bearish bias,” he added.
Since the beginning of the year, the ringgits have increased by 0.64% against the US dollar, but have weakened against other major currencies.
Local currency eased from the previous week’s 4.4110/4145, ending the week at 4.4410/4455 against the greenback.
The Ringgits traded almost low against other major currencies.
It rose to Japanese yen and 2.9809/9842 last week from 2.9909/9935, but it was immersed in 5.7070/7115 against the British pound and declined EURO to 4.8194/8243 from 4.7903/7941.
Local memos also depreciated against ASEAN currency.
It was relaxed from 3.3185/3214 to 3.3241/3277 against the Singapore Dollar, and was framed from 13.1124/1290 to 13.1820/2020 against the Thai Baat, and the Indonesian Rupiah was slipped from 271.6/272.0 to 271.6/271.0 to 271.6/272.0. 7.75/7.77, 7.71/7.73, last week.
