By Abdul Hamid A Rahman
KUALA LUMPUR, Oct 14 (NNN-Bernama) — The Malaysian ringgit is expected to remain easier next week, trading in the RM4.72-RM4.74 range against the US dollar.
SPI Asset Management managing partner Stephen Innes said the market stance is that the Federal Reserve is expected to continue its “higher for longer” policy, with interest rates to remain elevated for an extended period.
“I believe the dollar will continue to be in demand due to its distinctive safe-haven qualities and its yield advantage over the ringgit.
“However, because the market is currently positioned in favour of the dollar, traders may adopt a cautious approach and observe how US bond yields will evolve in the coming week and also monitor the developments in the Middle East crisis,” he told Bernama.
Consequently, he does not anticipate the local unit to test the RM4.70 level.
On a Friday-to-Friday basis, the ringgit weakened against the US dollar to 4.7260/7305 from 4.7115/7155 a week earlier.
The local unit traded mostly lower against other major currencies.
It depreciated vis-à-vis the British pound to 5.7615/7670 from 5.7494/7543 the previous Friday, went down against the euro to 4.9760/9807 from 4.9720/9763, previously.
Meanwhile, it went up against the Japanese yen to 3.1582/1615 from 3.1612/1641 at last week;s close.
The ringgit traded mixed against its ASEAN peers.
It appreciated against the Indonesian rupiah at 301.3/301.7 from 301.7/302.1 the previous Friday.
It depreciated against the Singapore dollar to 3.4522/4559 from 3.4458/4493 a week earlier and went down against the Thai baht at 12.9810/9995 from 12.7200/7367.
The local note traded unchanged against the Philippine peso at 8.32/8.33 as per last week’s close.
— NNN-BERNAMA