KUALA LUMPUR: The ringgit is expected to trade within a tight range next week following the US dollar's recent rally amid anticipation of slower United States (US) interest rate cuts, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
He said the local currency is likely to hover between 4.45 and 4.46 against the greenback in the upcoming week, while investors remain wary of the global economic outlook.
"The currency market will continue to remain in cautious mode as the uncertainties surrounding the US economic policies increase," he told Bernama.
Meanwhile, on the home front, Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour said the ringgit appreciated by 14.9 per cent against the US dollar in the third quarter of 2024 (3Q 2024) and 3.1 per cent year to date as at Nov 13.
Speaking at a press conference on Friday, he said the ringgit's performance in 3Q was mainly driven by the US Federal Reserve's (Fed) shift towards a monetary policy easing, including the cumulative 75-basis points federal funds rate cut in September and November.
At the same time, BNM also announced that the Malaysian economy expanded by 5.3 per cent in 3Q 2024, driven by strong investment activities and continued improvement in exports.
For the week just ended, the ringgit was traded mostly lower against the US dollar amid upside momentum following improved sentiment towards the greenback.
On a Friday-to-Friday basis, the ringgit depreciated against the US dollar to 4.4715/4780 from 4.3800/3850 a week ago.
It also traded mostly lower against other major currencies.
The local note eased versus the euro, closing at 4.7224/7292 against 4.7212/7266 a week earlier and declining vis-a-vis the Japanese yen to 2.8774/8818 from 2.8763/8798.
However, it strengthened against the British pound to 5.6573/6656 versus 5.6765/6830 previously.
Meanwhile, the ringgit was traded mostly lower against ASEAN currencies.
It slid versus the Philippines' peso to 7.61/7.63 from 7.51/7.53 at the end of last week, slipped against the Singapore dollar to 3.3330/3381 from 3.3149/3190 on Friday last week and went down vis-a-vis the Indonesian rupiah to 281.6/282.2 compared to 279.4/279.9 previously.
However, the local note appreciated against the Thai baht to 12.8307/8541 versus 12.8710/8925 previously.
-- BERNAMA