KUALA LUMPUR, April 6 — The ringgit is expected to trade range-bound next week, staying at the current level against the US dollar weighed down by external factors, sas an analyst.
FXTM research analyst Lukman Otunuga said the United States’ March inflation data and US Federal Reserve (Fed) chair Jerome Powell’s speeches in the week ahead could offer more clues on the direction of US interest rates and potentially spark more US dollar moves.
“China’s March trade data later in the week will also be stacked against rising hopes of a US-China trade deal, and should both unveil positive surprises, that could raise risk-on sentiment and prove positive for Asian currencies, including the ringgit,” he told Bernama.
On the local front, Lukman said attention primarily will be focused on February’s industrial production index (IPI) and manufacturing sales data due on April 11.
“Malaysia’s February IPI data release may offer some support to the local currency, should it post yet another positive surprise,” he added.
For the week just ended, the ringgit traded mostly easier against the US dollar on lack of demand, mainly due to the strengthening of the US dollar technical index, declining oil prices, and slower global economic growth outlook.
On a Friday-to-Friday basis, the ringgit fell to 4.0870/0900 from 4.0800/0850 against the US dollar.
The ringgit, however, traded mostly lower against other major currencies last week.
It marginally eased against the Singapore dollar to 3.0182/0207 from 3.0086/0128 previously, depreciated against the euro to 4.5889/5927 from 4.5737/5809 and decreased against the British pound to 5.3458/3509 from 5.3122/3203.
The local currency, however, appreciated versus the Japanese yen to 3.6583/6613 from 3.6820/6872. — Bernama
Source: The Malay Mail Online