Ringgit likely to be in tight range against greenback in coming week

The ringgit fell against the greenback at 4.4250/4270 on Friday (July 8), compared with 4.4060/4085 a week earlier. (Photo by Zahid Izzani Mohd Said/The Edge)

The ringgit fell against the greenback at 4.4250/4270 on Friday (July 8), compared with 4.4060/4085 a week earlier. (Photo by Zahid Izzani Mohd Said/The Edge)

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KUALA LUMPUR (July 9): The ringgit is likely to remain in a tight range around the 4.42 level against the US dollar next week on mixed market sentiments, an analyst said. 

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US market’s major focus next week would be on the Consumer Price Index for June 2022, which is expected to increase by 8.7% based on consensus estimates from 8.6% in May 2022.

The figures will be published next Wednesday (July 13).

Meanwhile, he said it seems that the US Federal Reserve is subscribing to monetarists’ view whereby inflation is always present as a result of the monetary phenomenon.

“This would put it as the front runner in respect to the monetary tightening campaign as other central banks are likely to remain measured in their rate hike decisions,” he told Bernama.

For the week just ended, the ringgit was traded mostly lower against the US dollar as sentiment was weighed down by a stronger greenback.

The ringgit fell against the greenback at 4.4250/4270 on Friday, compared with 4.4060/4085 a week earlier.

The local note, however, was traded mostly higher against a basket of major currencies on a Friday-on-Friday basis, except for the Japanese yen, where it fell to 3.2577/2595 from 3.2483/2504 previously.

The ringgit appreciated against the Singapore dollar to 3.1528/1547 from 3.1596/1618 a week earlier, gained against the British pound to 5.2888/2912 from 5.3163/3193 and strengthened versus the euro to 4.4777/4797 from 4.5060/6086.