KUALA LUMPUR, Nov 30 — The ringgit is expected to trade within the range of 4.4275 to 4.4475 versus the American dollar next week, with a slight upside bias, on anticipation of a US interest rate cut in December.
The US Federal Reserve’s (Fed) next policy meeting is scheduled for Dec 17-18, 2024.
SPI Asset Management managing director Stephen Innes said predicting the US dollar’s movement next week remains challenging, especially with US President-elect Donald Trump’s unpredictable actions. “Markets currently interpret his tariff threats as a negotiation strategy to secure concessions from trading partners, rather than an outright declaration of a trade battle,” he told Bernama.
Innes said that attention will also turn to US jobs data on Dec 6. “If the report meets expectations or falls short, it will likely solidify the prospects of a December Fed rate cut. Conversely, a strong report could introduce some uncertainty and support the US dollar,” he added.
The ringgit was mixed against the US dollar this week but strengthened on improved sentiment from declining US bond yields, less hawkish Fed meeting minutes and broader regional currency gains.
However, it faced pressure midweek due to concerns over potential US tariffs on Mexico, Canada and China. Trading was subdued later in the week, with limited activity ahead of the US Thanksgiving holiday.
On a Friday-to-Friday basis, the ringgit appreciated against the US dollar to 4.4425/4495 from 4.4660/4710 a week ago.
For the week, the local note was traded lower against other major currencies.
The local note dropped versus the euro at 4.6899/6973 against 4.6455/6507, slid against the British pound to 5.6384/6473 versus 5.5870/5932 and fell against the Japanese yen to 2.9589/9638 from 2.8906/8942 at last week’s close.
It traded mixed against Asean currencies.
It declined against the Singapore dollar to 3.3146/3200 from 3.3101/3141 and eased against the Thai baht, closing at 12.9459/9738 compared to 12.9068/9276 last Friday. The local note climbed vis-a-vis the Indonesian rupiah to 280.2/280.8 from 281.2/281.7 and was flat against the Philippine peso at 7.58/7.59 from 7.58/7.59. — Bernama