Kuala Lumpur: The ringgit’s outlook remains positive going into next week, with the currency expected to hover in the 4.26-4.29 range against the US dollar, according to SPI Asset Management managing partner Stephen Innes. He noted that the potential for Federal Reserve (Fed) rate cuts and easing US yields could push the greenback lower.

According to BERNAMA News Agency, recent US data fell below expectations, raising hopes for an interest rate cut, which weighed on the greenback. The softer US Consumer Price Index and Producer Price Index figures have increased hopes that the Fed may cut interest rates sooner than expected. Although the Fed has yet to confirm any changes, markets are already adjusting their expectations, Innes told Bernama.

Innes mentioned that Malaysia’s first-quarter gross domestic product (GDP) growth of 4.4 percent, though slightly below forecast, was in line with government targets and did not significantly impact the local currency. He added that market attention is now focused on forward risks, especially from the US, rather than past data.

The ringgit ended the week marginally higher against the US dollar, closing at 4.2900/2980 on Friday from 4.2970/3005 a week earlier. The local note traded mostly higher against a basket of major currencies, appreciating versus the euro and the Japanese yen, although it eased against the British pound.

The ringgit also traded mostly higher against ASEAN currencies, firming against the Singapore dollar, the Thai baht, and the Philippine peso. However, it edged down against the Indonesian rupiah.