The Ringgit Remains Below RM4.70 Against the USD This Week


 The Malaysian ringgit (RM) is expected to trade in a tight range between RM4.67 to RM4.68 against the US dollar this week as many traders are looking for new market directions.

Bank Muamalat Malaysia Bhd's Chief Economist, Mohd Afzanizam predicted that market discussions on a potential US interest rate cut may increase this month.

US Nonfarm Payroll, inflation rates and unemployment benefit claims are driving the weak labor market. Inflation eased to 3.2% in October and claims for unemployment benefits rose to 231,000.

He also said that the question now is that interest rate cuts and the Fed's uncertain steepness will make the ringgit expected to remain in a tight range. This week's focus is the FOMC minutes report for the market outlook.

Hong Leong Research reports that the ringgit will depreciate against G10 and regional currencies except for the Japanese yen and the Hong Kong dollar. The ringgit is also trading low compared to other Asian currencies.

The Singapore dollar, Indonesian rupiah and Thai baht have depreciated. Meanwhile, the Philippine peso improved.