Home Economy Ringgit likely to trade in cautious mode against US dollar next week

Ringgit likely to trade in cautious mode against US dollar next week

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For the week just ended, the ringgit was traded range-bound against the US dollar amid the expectation that the near-term economic outlook appears to be challenging. — Reuters pic

Saturday, 11 Jun 2022 11:14 AM MYT

KUALA LUMPUR, June 11 — The ringgit is expected to trade in cautious mode against the US dollar next week, said an analyst.

He said the United States Federal Open Market Committee (FOMC) is expected to deliver another half-a-point rate hike to cool soaring inflation in the country when it wraps up its meeting on June 14-15, 2022.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the 50 basis points hike in the Fed Fund Rate appears to have been fully priced in as inflation would likely to stay elevated.

He added that the inaction by the European Central Bank (ECB) on Thursday appeared to be giving further advantage to the US dollar with the US Dollar Index (DXY) currently hovering at more than 103…

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