KUALA LUMPUR: The ringgit is expected to stay in range-bound trade between RM4.42 and RM4.43 against the US dollar this week on caution ahead of more data from the United States, an economist says.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the focus this week would be on the US consumer price index report on Wednesday.
“This (data will be) quite critical as the following week the US Federal Open Market Committee (FOMC) will meet to make a monetary policy decision, hence there would be a blackout period from Dec 7-19 where FOMC participants and staff are barred from giving public interviews.
“In that sense, it will leave the markets with (only) the data points to make their inferences of (what) decision would be made,” he told Bernama.
Mohd Afzanizam said US data points last week had been supportive of a 25-basis-point rate cut in the upcoming FOMC meeting on Dec 17-18.
“This has translated into further support to the ringgit after the ringgit correction following the conclusion of the US presidential election on Nov 5,” he added.
On a Friday-to-Friday basis, the ringgit appreciated against the US dollar to 4.4170/4220 from 4.4425/4495 a week ago.
