KUALA LUMPUR: The ringgit is expected to trade within the range of 4.4275 to 4.4475 against the US dollar next week, with a slight upside bias due to anticipation of a potential US interest rate cut in December.

According to BERNAMA News Agency, the US Federal Reserve’s next policy meeting is set for December 17-18, 2024, which could influence currency movements. Stephen Innes, managing director of SPI Asset Management, noted the challenges in predicting the US dollar’s movement next week, particularly with US President-elect Donald Trump’s unpredictable actions. Markets currently view Trump’s tariff threats as a negotiation tactic aimed at securing concessions from trading partners rather than an outright trade battle, Innes explained.

Attention will also focus on US jobs data scheduled for December 6. If the report meets expectations or falls short, it could solidify the prospects of a December Fed rate cut. Conversely, a strong jobs report might introduce uncertainty and lend support to the US dollar, In
nes added.

This week, the ringgit experienced mixed performance against the US dollar but strengthened due to improved sentiment from declining US bond yields, less hawkish Fed meeting minutes, and broader regional currency gains. However, it faced midweek pressure from concerns over potential US tariffs on Mexico, Canada, and China. Trading was subdued later in the week, with limited activity ahead of the US Thanksgiving holiday.

On a week-to-week basis, the ringgit appreciated against the US dollar, closing at 4.4425/4495 from 4.4660/4710 the previous week. Despite this, the local currency traded lower against other major currencies, including the euro, British pound, and Japanese yen. It showed mixed results against ASEAN currencies, declining against the Singapore dollar and Thai baht, climbing against the Indonesian rupiah, and remaining flat against the Philippine peso.