Expect the ringgit to rise versus the dollar on Monday, with prices ranging from RM4.3259 to RM4.4390

Given the interest rate differential appears to benefit the ringgit, it is projected to trade better against the US dollar.

Chief economist Mohd Afzanizam Abdul Rashid of Bank Muamalat Malaysia Bhd stated that given worries about Donald Trump’s policies could cause traders and investors to take a more cautious stance, Bank Negara Malaysia (BNM) is likely to keep the overnight policy rate (OPR) the same throughout next year.

“The ringgit is likely to appreciate due to the benefits of the interest gap, especially since BNM may maintain the same OPR next year.”

“However, concerns about Trump’s policies for the upcoming year may deter traders and investors, leading them to exercise caution,” he stated to Bernama.

The support and resistance levels are currently at RM4.3259 and RM4.4390, respectively.

“It is possible that the USD/MYR will remain cautious and fluctuate between RM4.37 and RM4.38 next week,” Afzanizam stated.

Key data points for the upcoming week will include the United States Consumer Price Index and Producer Price Index, which will be released on Wednesday and Thursday, respectively.

“In Malaysia, we expect to release the third quarter of 2024 (3Q2024) gross domestic product on Friday, with a consensus of a 5.3% increase.”

“During the course of the event, speakers from the United States Federal Reserve will provide their perspectives on the economy and policies, particularly in relation to the recent presidential election outcome and its potential impact on the Fed’s monetary policy stance,” he stated.

The ringgit’s value against the US dollar decreased from 4.3780/3835 a week ago to 4.3800/3850 on a Friday-to-Friday basis.

It also exhibited a predominantly downward trend in comparison to other significant currencies.

The local note increased in value in relation to the euro, concluding at 4.7212/7266 on Friday, compared to 5.6502/6573 a week earlier. However, it weakened in value against the British pound, falling to 5.6765/6830 from 5.6502/6573, and declined in value against the Japanese yen, falling to 2.8763/8798 from 2.8652/8690, respectively.

In contrast, traders primarily traded the ringgit at a reduced rate against the currencies of the Association of Southeast Asian Nations (ASEAN).

It experienced a decline in value against the Philippine peso, falling from 7.49/7.51 to 7.51/7.53, and against the Singapore dollar, falling from 3.3054/3098 to 3.3149/3190. Additionally, it experienced a decline in value against the Indonesian rupiah, falling from 278.2/278.7 to 279.4/279.9.

However, the local note appreciated against the Thai baht to 12.8710/8925 from its previous value of 12.9103/9322.