Ringgit likely in range-bound trading on downside bias next week

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Ringgit likely in range-bound trading on downside bias next week
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KUALA LUMPUR, Sept 23 ― The Malaysian ringgit is expected to trade range-bound with a downward bias against the US dollar next week as the greenback continues to gain support...

KUALA LUMPUR, Sept 23 ― The Malaysian ringgit is expected to trade range-bound with a downward bias against the US dollar next week as the greenback continues to gain support from the Federal Reserve hawkish stance on the United States interest rate, an analyst said.

“The market will get no joy from the Fed this year as it appears they will be resolute on hawkish view. That said traders have been buying dollar for two months straight so they might come up for air and take a break into month end, when we get the usual onslaught of US activity data,” he told Bernama.

Clearly, the disinflationary trend has become apparent as the inflation rate has come down from as high as 4.7 per cent in August 2022, and in that sense, the overnight policy rate hike by 125 basis points since May last year has started to take its intended effect to the inflation rate, he viewed. “In that sense, the ringgit would linger around RM4.67 to RM4.69 versus the greenback next week,” he added.

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