The value of the ringgit is expected to be traded cautiously this week as investors await some important economic data that could have a major impact on the market.
At exactly 9am this morning, the ringgit rose to 4.6470 against the US dollar from where it closed at 4.6455 last week.
According to the Chief Economist of Bank Muamalat Malaysia, Afzanizam Rashid said the market is now paying more attention to the gross domestic product figures for the fourth quarter of 2023 in China, the Consumer Price Index (CPI) of the UK and the European Union this Wednesday.
He also said that the recent US CPI report, which was higher than expected, caused investors to reassess the expectation of an interest rate cut by the Federal Reserve (Fed) in March.
In addition, the ongoing Middle East conflict in the Red Sea may cause crude oil prices to skyrocket and may have an inflationary effect on the global market.
The conflict has resulted in a 20% decrease in traffic compared to previous years as most commercial vessels have to take long distances to avoid the attack areas.
The ringgit is expected to hover in a narrow range of around RM4.64 to RM4.65 against the US dollar this week.
However, the ringgit opened higher against several major world currencies. It strengthened against the euro to 5.0903 and the British pound to 5.9189 from its value at the close of last week. However, the ringgit slipped slightly against the Japanese Yen around the level of 3.2024.
The ringgit is seen as less powerful than some Asean currency groups. While it was strong against the Singapore dollar, it was also weak against the Indonesian rupiah, Thai baht and Philippine peso at the opening of trading this morning.
