KUALA LUMPUR — The ringgit is prone to maintain up higher in opposition to G10 currencies subsequent week besides the US greenback subsequent week following a revised decrease development forecast and better inflation fee by the European Central Financial institution (ECB).
SPI Asset Administration managing director Stephen Innes mentioned the ringgit is anticipated to proceed to weaken in opposition to the dollar following the strengthening of the US greenback forward of the USA (US) Federal Reserve (Fed) assembly subsequent week on Sept 19-20.
He mentioned that the Fed’s policymakers are anticipated to reveal their short-term rate of interest forecasts for the tip of 2023.
“In addition to, there’s a rising sense of optimism amongst a cohort of buyers who consider that Beijing’s latest initiatives to stimulate the economic system and stabilise monetary markets are exhibiting indicators of success, which may present a lifeline for the ringgit if future information builds on this development.
“Nevertheless, China’s property market stays an enormous concern for exporting nations into China, like Malaysia,” he instructed Bernama.
General, Innes mentioned the first elements contributing to the ringgit weak spot would come with the US rate of interest and the sluggish Chinese language and European financial development, each of which had been elevating export recession considerations for Asian economies.
“Thus, this can drive the safe-haven demand such because the US greenback. For subsequent week, there’s a likelihood the ringgit will transfer between the vary of 4.67 to 4.69 in opposition to the dollar,” he mentioned.
In the meantime, Financial institution Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid mentioned the Fed is anticipated to maintain the speed regular at 5.5 per cent at its assembly subsequent week.
“Extra importantly is their newest quarterly projection on macroeconomic variables. On that notice, the ringgit may keep weak because the Fed is anticipated to stay hawkish in its financial coverage stand.
“As such, the ringgit-US greenback is prone to linger round RM4.66 to RM4.68 subsequent week,” he mentioned.
On a Friday-to-Friday foundation, the ringgit weakened in opposition to the US greenback at 4.6815/6845 from 4.6745/6795 every week earlier.
The native unit, nevertheless, traded increased in opposition to different main currencies.
It appreciated in opposition to the British pound to five.8196/8233 from 5.8352/8414 the earlier Friday, rose versus the euro to 4.9919/9951 from 5.0031/0085 and was increased vis-a-vis the Japanese yen to three.1670/1693 from 3.1741/1777 from beforehand.
The ringgit traded blended in opposition to its Asean friends.
The native unit eased in opposition to the Singapore greenback to three.4350/4374 from 3.4277/4312 every week earlier however strengthened in opposition to the Thai baht at 13.0681/0812 from 13.1591/1787 final Friday.
It fell vis-a-vis the Philippine peso to eight.24/8.25 from 8.21/8.22 final week however barely higher versus the Indonesian rupiah to 304.8/305.2 from 304.9/305.4. — BERNAMA