Ringgit will trade between 4.47 and 4.50 against the dollar this week; This trade is expected to show weakness

KUALA LUMPUR (Bernama): The ringgit is likely to show weakness next week during the final trading period of 2024 and early 2025, with moves likely to be between 4.47 and 4.50.

Stephen Innes, managing partner at SPI Asset Management, expects Asian currencies, including the ringgit, to face a cautious period as market participants navigate mixed signals and geopolitical concerns during the weak trading week.

He said the U.S. dollar currently tends to weaken seasonally, but there is an added layer of uncertainty given impending tariffs from President-elect Donald Trump.

“Locally, investors also remain cautious due to concerns about China’s economic woes, particularly the record $411 billion special bond issuance planned for next year and its potential impact on consumer demand.”

“This uncertainty has cast a shadow over the ringgit,” he told Bernama.

Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors, expected a lower ringgit move next week after the Federal Reserve expected a cautious approach.

He said market expectations of just two U.S. interest rate cuts in 2025 would support the greenback.

“As we enter 2025, Asian currencies are expected to weaken against the US dollar in the first six months, reflecting market reactions to Trump’s re-election and expected trade tariffs.

“Since Trump’s victory in early November, the U.S. dollar index has risen about 4.0 percent to 107.6, its highest level in two years, reflecting expectations of possible tariffs on U.S. trading partners,” he noted.

The ringgit remained in positive territory throughout the week, supported by higher oil prices, before closing little changed on Friday.

On Friday to Friday, the ringgit appreciated against the US dollar to 4.4680/4750, compared to 4.5055/5100 a week ago.

Over the week, the local note traded higher compared to other major currencies.

Against the British pound, it rose to 5.5904/5991 from 5.6328/6384 previously.

Against the euro it rose to 4.6543/6616 from 4.6776/6823 and rose against the Japanese yen to 2.8300/8346 from 2.8747/8779 at the close of last week.

The ringgit traded mixedly against ASEAN currencies, rising to 3.2846/2900 against the Singapore dollar from 3.3146/3181 and against the Indonesian rupiah at 275.4/276.1 from 277.7/278.1 previously .

Against the Thai baht it fell to 13.1023/1289 from 13.0670/0861 and fell to 7.72/7.74 from 7.66/7.67 against the Philippine peso last week. -Bernama