Ringgit expected to trade higher against USD

The ringgit is expected to trade higher against the US dollar as the interest rate differential seems to favour the ringgit, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.

He said Bank Negara Malaysia (BNM) is likely to maintain the overnight policy rate (OPR) at 3 percent throughout next year and noted that concerns over incoming US President Donald Trump’s policies could lead traders and investors to adopt a more cautious approach.

“The ringgit is likely to appreciate since the interest gap favours it, especially as BNM may maintain the OPR throughout next year.

“But anxiety over Trump’s policies next year could put off traders and investors and they would err on the side of caution,” he told Bernama.

The support and resistance level currently stands at RM4.3259 and RM4.4390, respectively, said Mohd Afzanizam.

“Perhaps, the USD/MYR could remain guarded and revolve around RM4.37 to RM4.38 next week,” he said.

Mohd Afzanizam said key data points for next week would be the United States Consumer Price Index and Producer Price Index on Wednesday and Thursday.

“As for Malaysia, the third quarter of 2024 (3Q2024) gross domestic product (GDP) will be out on Friday with consensus pencilling in a 5.3 per cent growth.

“Along the way, there will be speakers from the United States Federal Reserve (Fed) officials that will share their thoughts on the economy and policies, especially in the context of the recent presidential election result and how this would shape Fed’s monetary policy stance,” he added.