RINGGIT TO REMAIN CAUTIOUS NEXT WEEK AHEAD OF MALAYSIA, US POLICY MOVES - ECONOMIST

By Anas Abu Hassan

KUALA LUMPUR, May 3 (Bernama) -- The ringgit is likely to trade in a cautious mode next week as investors will focus on the monetary policy decisions domestically and from the United States (US), said an economist.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said all eyes will be on the Federal Open Market Committee (FOMC) and the Bank Negara Malaysia (BNM) Monetary Policy Committee (MPC) meetings, both scheduled for next week, to assess the market sentiment amid ongoing uncertainties. 

"We sense that the United States Federal Reserve might incline to ease its policy rate as the uncertainties over tariff shocks have weighed heavily on business and consumer sentiments. 

"On that note, the ringgit would stay cautious as traders and investors will assess the possible policy response from the monetary authorities next week," he told Bernama. 

Meanwhile, Kenanga Investment Bank Bhd expects the ringgit to trade within the 4.30-4.35 range against the US dollar next week, with markets remaining cautious amid ongoing global economic uncertainty and evolving tariff dynamics.

"Trade negotiations, particularly between the US and China, will remain a critical swing factor for the US dollar. Domestically, BNM is expected to hold its ground, but any downward revision to Malaysia’s growth outlook may attract attention," it said. 

The investment bank also noted that positive outcomes from the special parliamentary sitting on May 5 could also lend additional support to the local currency.

The ringgit ended the week stronger against the US dollar, closing at 4.2560/2600, from 4.3705/3770 in the preceding week.

It also firmed against a basket of major currencies.

The ringgit improved against the euro to 4.8297/8342 from 4.9596/9670 last week, strengthened vis-a-vis the Japanese yen to 2.9437/9467 from 3.0431/0481, and appreciated against the British pound to 5.6639/6692 from 5.8128/8214.

The local note was traded higher against ASEAN currencies.

It gained against the Indonesian rupiah to 258.8/259.3 from 259.6/260.2 and rose against the Singapore dollar to 3.2862/2898 from 3.3228/3280.

It also strengthened versus the Thai baht to 12.8697/8903 from 13.0195/0450 in the previous week and advanced against the Philippine peso at 7.65/7.67 from 7.77/7.78 the previous Friday.

-- BERNAMA