Ringgit likely to trade within RM4.22-RM4.23 against greenback next week

KUALA LUMPUR: The ringgit is likely to trade around RM4.22 to RM4.23 next week, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that next week multiple United States (US) economic data will be out, namely the US Consumer Price Index (CPI) and Producer Price Index (PPI) for the month of May which plays a key role in shaping the market.

“While the data might show deceleration in inflation rate, the US Federal Reserve is likely to stay cautious as it is wary about the potential inflationary pressures arising from the tariff shocks. 

“Already, responses from the US Institute for Supply Management (ISM) Index survey indicated that businesses have become more pessimistic as the higher tariffs have affected the supply chains and resulted in higher operating costs,” he told Bernama.

The ringgit ended the week higher against the US dollar, closing at 4.2270/2360 on Friday from 4.2530/2605 a week earlier.

The local note traded mostly higher against a basket of major currencies.

The ringgit rose vis-à-vis the Japanese yen to 2.9324/9390 from 2.9531/9585 and inched higher against the British pound to 5.7212/7334 from 5.7284/7385 a week earlier.

However, it depreciated versus the euro to 4.8268/8371 at Friday’s close from 4.8169/8254 at the end of last week.

The ringgit traded mostly higher against ASEAN currencies.

The local note improved against the Singapore dollar to 3.2862/2934  on Friday from 3.2938/3002 the previous week, edged higher versus the Indonesian rupiah to 259.5/260.2 from 260.4/261.1 and stronger vis-a-vis the Philippine peso to 7.58/7.60 from 7.62/7.64 a week before, 

However, it weakened versus the Thai baht to 12.9599/9947 from 12.9507/9790 last week. – Bernama