KUALA LUMPUR: The ringgit is expected to remain within a tight trading range, moving between RM4.46 and RM4.48 next week, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
He noted that traders will closely monitor the United States (US) personal consumption expenditures (PCE) data to be released next week, the Federal Reserve's preferred inflation gauge, for October.
"At the current juncture, markets anticipate the Fed will adopt a cautious monetary easing approach, factoring in possible inflationary policies from US President-elect Donald Trump next year," he told Bernama.
Mohd Afzanizam also highlighted that the 10-year US Treasury yield has risen from 4.27 per cent during the US presidential election to 4.41 per cent to 4.42 per cent, an increase of 14 basis points, reflecting market expectations of a more inflationary environment ahead.
For the week just ended, the ringgit was traded mostly higher against the US dollar despite ongoing concern over geopolitical tensions in Ukraine.
On a Friday-to-Friday basis, the ringgit appreciated against the US dollar to 4.4660/4720 from 4.4715/4770 a week ago.
It also gained against most other major currencies.
The local note increased versus the euro, closing at 4.6455/6507 against 4.7224/7292 a week earlier and strengthened vis-a-vis the British pound to 5.5870/5932 versus 5.6573/6656, but it fell against the Japanese yen to 2.8906/8942 from 2.8774/8818.
Meanwhile, the ringgit was also traded mostly higher against ASEAN currencies.
It gained versus the Philippines' peso to 7.58/7.59 from 7.61/7.63 at the end of last week, improved against the Singapore dollar to 3.3101/3141 from 3.3330/3381 on Friday last week, and edged up vis-a-vis the Indonesian rupiah to 281.2/281.7 compared to 281.6/282.2 previously.
However, the local note depreciated against the Thai baht, closing at 12.9068/9276 compared to 12.8307/8541 the previous week. — BERNAMA