KUALA LUMPUR, Nov 9 — The ringgit is expected to trade higher against the US dollar as the interest rate differential seems to favour the ringgit, said an economist.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Bank Negara Malaysia (BNM) is likely to maintain the overnight policy rate (OPR) throughout next year and noted that concerns over Donald Trump’s policies could lead traders and investors to adopt a more cautious approach.

"The ringgit is likely to appreciate since the interest gap favours it, especially as BNM may maintain the OPR throughout next year.

"But anxiety over Trump’s policies next year could put off traders and investors and they would err on the side of caution,” he told Bernama.

At the current juncture, the support and resistance level stands at RM4.3259 and RM4.4390, respectively, said Mohd Afzanizam.

"Perhaps, the USD/MYR could remain guarded and revolve around RM4.37 to RM4.38 next week,” he said.

Mohd Afzanizam said key data points for next week would be the United States Consumer Price Index and Producer Price Index on Wednesday and Thursday.

"As for Malaysia, the third quarter of 2024 (3Q2024) gross domestic product (GDP) will be out on Friday with consensus pencilling in a 5.3 per cent growth.

"Along the way, there will be speakers from the United States Federal Reserve (Fed) officials that will share their thoughts on the economy and policies, especially in the context of the recent presidential election result and how this would shape Fed’s monetary policy stance,” he added.

On a Friday-to-Friday basis, the ringgit eased against the US dollar to 4.3800/3850 from 4.3780/3835 a week ago.

It also traded mostly lower against other major currencies.

The local note advanced versus the euro, closing at 4.7212/7266 on Friday from 5.6502/6573 a week earlier, but weakened against the British pound to 5.6765/6830 from 5.6502/6573 and declined vis-a-vis the Japanese yen to 2.8763/8798 from 2.8652/8690 previously.

Meanwhile, the ringgit was traded mostly lower against ASEAN currencies.

It slid versus the Philippine peso to 7.51/7.53 from 7.49/7.51 at the end of last week, slipped against the Singapore dollar to 3.3149/3190 from 3.3054/3098 last week and went down vis-a-vis the Indonesian rupiah to 279.4/279.9 from 278.2/278.7 previously.

However, the local note appreciated against the Thai baht to 12.8710/8925 from 12.9103/9322 previously. — Bernama