The ringgit is expected to trade in a small range of around RM4.73 to RM4.74 against the US dollar this week.
From a technical point of view, analysts predict a reduction in USD/MYR remaining in the neutral zone.
According to the Chief Economist of Bank Muamalat Malaysia Bhd, Mohd Afzanizam Abdul Rashid said the recent cut in the policy rate by the Swiss National Bank by 25 basis points to 1.50% has further strengthened the US dollar and the Fed will not reduce its rate in the near term.
He also said that the US dollar really stood out after the recent rate hike by the Bank of Japan which failed to boost the Japanese yen as the outlook for higher rates in Japan remains uncertain.
In addition, the current Fed Funds Rate which is currently at 5.50% will also give the US dollar an advantage in terms of interest rate differentials.
At 9.05 am, the ringgit fell to 4.7390 against the US dollar from 4.7340 at the close last Friday.
Meanwhile, the local note is trading higher against most major currencies.
It improved against the Japanese yen to 3.1223/1258 from 3.1637/1669 a week earlier, higher against the British pound to 5.9582/9645 from 6.0003/0060 and rose against the euro at 5.1203/1257 from 5.1275/1324 previously.
The ringgit is also trading higher against Asean currencies.
It rose to 13.0116/0318 against the Thai baht from 13.1480/1661 last Friday.
