The ringgit may continue to trade under pressure within the 4.36 – 4.38 range as the USD may continue to be supported by a series of potential hawkish statements by Fed speakers and rising price pressures, Kenanga Research said in a note.
However, it said that a stronger-than-expected domestic macroeconomic reading, especially the 1Q22 GDP may help to limit the ringgit’s depreciation.
AmBank Research in a report said that Bank Negara Malaysia’s monetary policy meeting will be held this Wednesday and Thursday (11 and 12 May), where it expects the OPR will stay at the current level.
On the 1Q22 GDP numbers that will be published this Friday, AmBank Research said that its in-house projection is showing a growth of 6.5% for the first quarter of 2022.
Reviewing the performance of the ringgit, Kenanga Research said that the ringgit ended weaker against the USD in a holiday-shortened week as the USD index (DXY) climbed near the 104.0 level while the 10-year US Treasury yield soared to as high as 3.13% (May 6) amid a bout of global risk-aversion in equities.
It said that the strengthening slightly post-FOMC meeting due to Fed’s Powell’s comments against a 75-basis point hike, the ringgit quickly reversed its gains as demand for the greenback remained solid amid worries over slowing global economic growth.