KUALA LUMPUR: The ringgit is expected to trade within the narrow range of 4.50 to 4.52 against the US dollar this week, reflecting subdued volatility and cautious sentiment among traders during the Christmas holiday period.
SPI Asset Management managing partner Stephen Innes said there would be reduced trading activity due to the holiday season and the foreign exchange market is unlikely to see significant movements.
“The likelihood of substantial volatility is low unless an unexpected geopolitical or economic event occurs, although such surprises currently seem improbable. As a result, the market is expected to remain relatively calm,” he told Bernama.
Innes said in this context, he expects the ringgit to remain stable, hovering close to last week’s closing level.
The ringgit consistently ended lower against the greenback throughout last week amid the uncertainty of the United States interest rate outlook, especially after the US Federal Reserve signalled fewer rate cuts next year.
Additionally, upbeat US economic data lent further support to the greenback.
On a Friday-to-Friday basis, last week, the ringgit declined against the US dollar to 4.5055/5100 from 4.4475/4525 a week ago.
Lat week the local note traded mostly lower against other major currencies.
It depreciated versus the euro to 4.6776/6823 from 4.6632/6684 and dipped against the British pound to 5.6328/6384 versus 5.6203/6266 previously.
It rose against the Japanese yen to 2.8747/8779 from 2.8987/9022 at last week’s close.
