Ringgit set to be flat with downward bias against US dollar next week

Ringgit set to be flat with downward bias against US dollar next week

KUALA LUMPUR,. The ringgit is expected to trade sideways with a downward bias against the US dollar next week, an analyst said.

The analyst noted that rising US treasury yields and the expectation of higher interest rates following the release of the US Federal Open Market Committee ( US FOMC) meeting minutes for December have pressured the ringgit.

“With the US FOMC’s first meeting for this year scheduled on Jan 25-26, investors are keeping a close eye on the meeting’s outcome for the rate hike decision. Hence, I would suggest a range of 4.20 to 4.22 level against the greenback next week,” he told Bernama.

For the week just ended, the ringgit traded lower, except yesterday as steadier crude oil prices lent support to the local currency. However, it ended the first trading week of 2022 lower versus the US dollar at 4.2070/2080 at Friday’s close compared with 4.1650/1680 a week earlier.

The local currency also traded lower against other major currencies against the previous Friday.

It depreciated against the Singapore dollar to 3.0958/0981 from 3.0872/0899 last Friday and weakened vis-a-vis the Japanese yen to 3.6320/6336 from 3.6186/6212 in the previous week.

The ringgit fell against the euro to 4.7602/7640 from 4.7194/7228 and decreased against the British pound to 5.6999/7037 compared with 5.6277/6318 on Friday last week. — Bernama

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