Kuala Lumpur: The ringgit is predicted to continue its upward trend against the US dollar in the upcoming week, with potential trading values ranging between 4.41 and 4.42, as stated by Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid.

According to BERNAMA News Agency, the focus will be on the movement of the US Dollar Index (DXY), which recently fell to 99.758 points. Dr. Mohd Afzanizam indicated that if the DXY remains subdued, the ringgit could see further appreciation. He also highlighted that the ongoing US-China trade war continues to play a crucial role in shaping market sentiment. The uncertainties surrounding potential announcements from the US administration have left markets wary, as investors find it challenging to predict the global economic impact of these developments.

Additionally, Stephen Innes, managing director of SPI Asset Management, predicts that the foreign exchange markets will likely stabilise in the coming week. He noted that the impact of the trade war is diminishing as the focus shifts from policy-driven concerns to political posturing.

The ringgit concluded the week trading at 4.4200/4265 against the US dollar, an improvement from 4.4335/4400 the previous week. Year to date, the ringgit has appreciated by 1.09 percent. However, it weakened against the Japanese yen, euro, and British pound, while showing mixed results against ASEAN currencies. The ringgit strengthened against the Philippine peso and Indonesian rupiah but declined against the Singapore dollar and Thai baht.