PETALING JAYA: The ringgit is poised to trend higher this week to 4.65 against the US dollar, supported by positive economic indicators, says an investment bank.
Kenanga Investment Bank Bhd
said the indicators include stable labour market conditions, record-high distributive trade sales values and Bank Negara’s status quo on the overnight policy rate.
“This has helped bolster the ringgit, enabling it to overcome the greenback’s strength and appreciate by more than 0.4% on a Thursday-to-Thursday basis,” it said in its “Ringgit Weekly Outlook” note.
It further said the solid domestic industrial production index reading for May 2024 released last Friday, coupled with strong second-quarter 2024 preliminary gross domestic product reading expected soon, may also boost economic prospects.
From a technical viewpoint, with a potentially weaker US retail sales reading and dovish remarks by the Federal Reserve, the ringgit’s movement towards 4.65 against the US dollar is possible. — Bernama
